- 5 - half of his personal services during the year in real property trades or businesses in which he materially participated and (2) he worked more than 750 hours a year in those real estate activities. See sec. 469(c)(7)(B); see also Rule 142(a) (petitioner bears the burden of proof); Welch v. Helvering, 290 U.S. 111, 115 (1933) (same). Petitioner’s burden requires, in part, that he maintain sufficient documentation to substantiate the time that he devoted to his rental properties. See sec. 6001; Hradesky v. Commissioner, 65 T.C. 87, 90 (1975), affd. per curiam 540 F.2d 821 (5th Cir. 1976). As to the evidence that he may introduce to prove the amount of his personal time that he devoted to the rental properties, section 1.469-5T(f)(4), Temporary Income Tax Regs., 53 Fed. Reg. 5727 (Feb. 25, 1988), provides: (4) Methods of proof. 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 has failed to carry his burden; i.e., we are not persuaded by the record that he was a real estate professional in either year. Petitioner strives to meet his burden by relying primarily on his testimony at trial and noncontemporaneous logsPage: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011