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Petitioners claim that Ms. Alders' testimony is sufficient to
satisfy the requirement that they spent more time operating the
Maui condo than any other individual. Indeed, we find that
petitioners clearly spent more time than Rainbow Reservations in
marketing, renting, and repairing the Maui condo.4 Cf. Chapin v.
Commissioner, T.C. Memo. 1996-56.
Respondent asserts, however, that petitioners have failed to
take into consideration the front desk contract between Rainbow
Reservations and the Homeowners' Association, of which petitioners
were members. Under that contract, Rainbow Reservations operated
the front desk for all condominiums, regardless of whether a
management contract was executed. As part of that contract,
Rainbow Reservations agreed to check in and out all tenants at the
Valley Isle Resort, issue parking permits, and answer questions or
assist tenants during the front desk business hours of between 8
a.m. and 5 p.m. As a result, the front desk was available 9 hours
per day, 7 days per week, to assist the tenants of each condominium
4 If checking in and out each tenant at the front desk
took a total of 30 minutes, and maid service took an additional 3
hours each time a tenant departed, the total time spent by the
front desk and cleaning personnel for the 22 weeks petitioners'
Maui condo was rented would be 77 hours. We do not believe that
the front desk's other responsibilities, including rent
collection and disbursements, additional linen or maid service,
or other special services, consumed more than another 120 hours,
or at least not more than petitioners' participation time.
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