Walter A. Barniskis and Mary Sue Barniskis - Page 10

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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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