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(ii) such taxpayer performs more than 750 hours of
services during the taxable year in real property trades or
businesses in which the taxpayer materially participates.
Sec. 469(c)(7)(B). In the case of a joint return, the above
requirements for qualification as a real estate professional are
satisfied if and only if either spouse separately satisfies these
requirements. Sec. 469(c)(7)(B). Thus, if either spouse
qualifies as a real estate professional, the rental activities of
the real estate professional are not a per se passive activity
under section 469(c)(2).
The applicable temporary regulation addresses how a taxpayer
may establish the amount of time spent on rental property
activities. To wit, that regulation 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.
Sec. 1.469-5T(f)(4), Temporary Income Tax Regs., 53 Fed. Reg.
5727 (Feb. 25, 1988). This Court has acknowledged that the
passive loss regulations are somewhat ambivalent as to the
records to be maintained by taxpayers. Goshorn v. Commissioner,
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Last modified: May 25, 2011