- 11 - whether she was a real estate professional, because the Lake Arrowhead property is not “rental real estate” as defined in section 1.469-9(b)(3), Income Tax Regs. Section 1.469-9(b)(3), Income Tax Regs., defines “rental real estate” as “any real property used by customers or held for use by customers in a rental activity within the meaning of section 1.469-1T(e)(3).” Section 1.469-1T(e)(3), Temporary Income Tax Regs., 53 Fed. Reg. 5702 (Feb. 25, 1988), states that, except as otherwise provided, an activity is a “rental activity” for a taxable year, if “during such taxable year, tangible property held in connection with the activity is used by customers or held for use by customers”. See also sec. 469(j)(8). As provided in section 1.469- 1T(e)(3)(ii)(A), Temporary Income Tax Regs., supra, an “activity involving the use of tangible property is not a rental activity for a taxable year if for such taxable year * * * [the] average period of customer use for such property is seven days or less”. The average period of customer use for the Lake Arrowhead property was less than 7 days during 1996 and 1997. Thus, the rental of the Lake Arrowhead property is not a “rental activity” as defined in section 1.469-1T(e)(3)(ii)(A), Temporary Income Tax Regs., supra, not “rental real estate” under section 1.469- 9(b)(3), Income Tax Regs., and not included in the election under section 469(c)(7) to treat all interests in rental real estate as a single rental real estate activity. See Scheiner v.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011