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petitioners' combined hours of participation in deciding whether
this material participation test is satisfied. See sec.
469(h)(5); sec. 1.469-5T(f)(3), Temporary Income Tax Regs., 53
Fed. Reg. 5727 (Feb. 25, 1988).
With respect to the evidence which may be used to establish
hours of participation, section 1.469-5T(f)(4), Temporary Income
Tax Regs., 53 Fed. Reg. 5727 (Feb. 25, 1988), provides:
The extent of an individual's participation in an
activity may be established by any reasonable means.
Contemporaneous daily time reports, logs, or similar
documents are not required if the extent of such
participation may be established by other reasonable
means. Reasonable means for purposes of this paragraph
may include but are not limited to the identification
of services performed over a period of time and the
approximate number of hours spent performing such
services during such period, based on appointment
books, calendars, or narrative summaries.
In their brief, petitioners characterized their personal
time records as detailed records of their participation. We have
carefully reviewed these personal time records and find that the
exhibit which purports to summarize petitioners' total hours of
participation is not accurate. The summary exhibit lists
petitioners' total hours of participation as 174 hours for 1991,
239 hours for 1992, and 154.5 hours for 1993. We compute the
total hours of participation as listed in the underlying records
to be 149.50 hours for 1991, 146.25 hours for 1992, and 108.25
hours for 1993.
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