- 18 -
In determining whether a taxpayer materially participates,
the participation of the spouse of the taxpayer shall be taken
into account. Sec. 469(h)(5). Petitioners’ reply brief argues
that they both spent time in the activity in issue; however,
Bruce Bailey did not testify or even appear at trial.
Petitioners’ assertion that Bruce Bailey spent time in the
activity appears to be an afterthought; such participation is not
mentioned in the testimony of petitioner, who described only her
own actions. Thus, we are unable to take into account the hours,
if any, spent by Bruce Bailey in the operation of the Lake
Arrowhead property.
Petitioners contend that they meet several of the material
participation tests under section 1.469-5T(a), Temporary Income
Tax Regs., 53 Fed. Reg. 5696 (Feb. 25, 1988). Petitioner’s
summary report estimated that she spent 197.5 hours and 214 hours
in 1996 and 1997, respectively, on activities related to the Lake
Arrowhead property. Petitioner’s calendars indicated the number
of visits made to the Lake Arrowhead property in 1996 and 1997,
but those calendars do not quantify the number of hours that
petitioner spent on activities related to the Lake Arrowhead
property. For the reasons stated previously, we do not accept
petitioner’s summary reports that estimated the hours spent on
activities related to the Lake Arrowhead property. See Carlstedt
Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 NextLast modified: May 25, 2011