Bruce and Judy Bailey - Page 12

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          Commissioner, T.C. Memo. 1996-554 (where average period of                  
          customer use less than 7 days, condominium hotel activity was not           
          rental activity under section 469(j)(8) and not considered a                
          passive activity under section 469(c)(2)); Mordkin v.                       
          Commissioner, T.C. Memo. 1996-187.                                          
               Respondent maintains that petitioner is not a real estate              
          professional for 1997 because:  (1) Petitioners have not                    
          substantiated through a reasonable means that petitioner                    
          performed more than 750 hours of service in relation to her                 
          rental activities and (2) petitioner’s personal services                    
          performed in her rental activities during 1997 do not exceed the            
          876 hours that she spent in her practice of law.                            
               With respect to the evidence that 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:                     
               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.                              
               Petitioner kept a daily calendar for 1997 that indicated the           
          number of visits made to the rental properties, but the calendar            
          did not quantify the number of hours that she spent on her rental           

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