Bruce and Judy Bailey - Page 14

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          v. Commissioner, T.C. Memo. 1997-331; Speer v. Commissioner, T.C.           
          Memo. 1996-323; Goshorn v. Commissioner, T.C. Memo. 1993-578.               
          Petitioner has not distinguished the facts of this case from                
          those cited, and we conclude that they are not distinguishable.             
               The following factors further diminish the credibility and             
          accuracy of the summary report prepared by petitioner:  (1) The             
          number of hours claimed appears excessive in relation to the                
          tasks described; (2) petitioner testified that she usually                  
          combined a trip to the rental properties with a trip related to             
          her law practice; (3) the Elderwood properties were vacant during           
          1997; (4) the Elderwood properties and Indian Wells properties              
          were for sale during 1997; and (5) petitioner had a commission              
          agreement with Shirley Baughan and Associates to manage the                 
          rental of the Indian Wells condominium during 1997.                         
               Additionally, petitioner’s personal services performed in              
          her rental activities of 827 hours do not exceed the 876 hours              
          that she spent in 1997 in her practice of law.  Petitioner                  
          therefore does not qualify as a real estate professional under              
          section 469(c)(7), and the rental activities of the Indian Wells            
          properties and Elderwood properties are passive activities under            
          section 469(c)(2) during 1997 regardless of material                        
          participation by petitioner in these activities.  See sec.                  

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