Walter A. Barniskis and Mary Sue Barniskis - Page 6




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          guests departed.  The cleaning activity included cleaning the               
          interior of the unit and laundering the linens and towels.                  
               TMC's employees maintained daily books and records                     
          reflecting the collected rents and fees owed by petitioners.                
          They issued monthly and annual reports to petitioners reflecting            
          the rental activity, owner charges, and TMC's share of the gross            
          rentals.                                                                    
               Petitioners' duties under the management contract included             
          providing TMC with a schedule of their intended personal use,               
          maintaining adequate insurance on their unit, and complying with            
          certain "Interior Quality Standards".                                       
               TMC made detailed inspections of petitioners' unit at least            
          annually and compiled lists of mandatory repairs and items which            
          needed to be replaced in order to satisfy the Interior Quality              
          Standards.  Petitioners were given the choice to personally make            
          these repairs and improvements or to authorize TMC to make them.            
          If they failed to comply by certain dates, TMC would arrange for            
          the work to be performed by its employees or subcontractors and             
          charge petitioners accordingly.                                             
               Petitioners traveled to Bluefin Bay 5 or 6 times during each           
          of the taxable years.  In most cases, petitioners would stay at             
          Bluefin Bay in their unit for a long weekend.  They also spent 1            
          full week each summer in their unit.  Petitioners' trips to                 
          Bluefin Bay usually combined family vacations with owner                    






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Last modified: May 25, 2011