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participated in the activity. Sec. 1.469-9(e)(1), Income Tax
Regs.
For purposes of determining whether a taxpayer is a real
estate professional, a taxpayer’s material participation is
determined separately with respect to each rental property,
unless the taxpayer makes an election to treat all interests in
rental real estate as a single rental real estate activity. Sec.
469(c)(7)(A); sec. 1.469-9(e)(1), Income Tax Regs. Here,
petitioners made an election in 1994 to treat their rental
properties as a single activity. According to section 1.469-
9(g)(1), Income Tax Regs., this election is binding for the
taxable year in which it is made and, unless duly revoked by the
taxpayer, for all future years in which the taxpayer is a real
estate professional, even if there are intervening years in which
the taxpayer is not a real estate professional.
Whether petitioner qualifies as a real estate professional
under section 469(c)(7) is based on petitioner’s activities
related to the Indian Wells condominium, Indian Wells unit, and
Elderwood properties. Petitioners argue that the Lake Arrowhead
property is rental real estate that should be included in
determining whether petitioner is a real estate professional. We
disagree.
Petitioner’s activities that are related to the Lake
Arrowhead property are disregarded for purposes of determining
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