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Regs., 53 Fed. Reg. 5726 (Feb. 25, 1988). Respondent argues that
petitioners have not satisfied this material participation test.
We must initially decide whether petitioners participated in
the rental of their unit for more than 100 hours during each of
the taxable years in issue. Section 1.469-5(f)(1), Income Tax
Regs., generally provides that any work done by an individual in
connection with an activity in which the individual owns an
interest at the time the work is done shall be treated as
participation of the individual in the activity. We consider
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:
(4) Methods of proof. 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.
Petitioners submitted copies of their monthly calendars from
1991, 1992, and 1993, two documents which purport to summarize
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