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Furthermore, section 1.469-5T(f)(2)(ii)(A), Temporary Income
Tax Regs., 53 Fed. Reg. 5727 (Feb. 25, 1988), provides that work
performed by an individual in the individual's capacity as an
investor in an activity shall not be treated as participation of
the individual in the activity unless the individual is involved
in the day-to-day management or operations of the activity. We
find that petitioners were not involved in the day-to-day
management or operations of their unit because TMC managed and
operated the entire Bluefin Bay complex on a daily basis.
Section 1.469-5T(f)(2)(ii)(B), Temporary Income Tax Regs.,
53 Fed. Reg. 5727 (Feb. 25, 1988), provides that investor
activities include:
(1) Studying and reviewing financial statements or
reports on operations of the activity;
(2) Preparing or compiling summaries or analyses of the
finances or operations of the activity for the individual's
own use; and
(3) Monitoring the finances or operations of the
activity in a non-managerial capacity.
We find that several of the activities described in
petitioners' personal time records constitute investor
activities. In particular, petitioners' activities of organizing
their personal records, preparing their taxes, paying bills, and
reviewing their monthly statements of the rentals of their unit
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