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the activity represents amounts paid for the use of the tangible
property. See sec. 469(j)(8); sec. 1.469-1T(e)(3)(i), Temporary
Income Tax Regs., 53 Fed. Reg. 5702 (Feb. 25, 1988). Under the
literal language of the statute, petitioner is engaged in a
rental activity and section 469(a) applies.
The regulations provide several exceptions where activities
involving tangible property will not be considered rental
activities. See sec. 1.469-1T(e)(3)(ii), Temporary Income Tax
Regs., 53 Fed. Reg. 5702 (Feb. 25, 1988). Petitioner, however,
has not directed us to any specific provision of the regulations.
Morever, we have examined these provisions and do not find any
relief for petitioner. For example, section 1.469-
1T(e)(3)(ii)(A) and (B), Temporary Income Tax Regs., 53 Fed. Reg.
5702 (Feb. 25, 1988), provides that, if the period of customer
use is 7 days or less (or 30 days or less and there are
significant personal services provided by the taxpayer), the
activity involving the use of tangible personal property is not a
rental activity. But, under the facts here, the lessee is
Friendly Air, and the leases were on a yearly basis. Even if
petitioner satisfied the other requirements, the exceptions in
the regulations would not apply.
Petitioner also may contend that the exception contained in
section 469(i) is applicable because he “actively participated”
in the activity. Sec. 469(i)(1). But that section applies only
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