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Thus, to hold in petitioners’ favor, the Court must find: (1)
That more than one-half of Mrs. Jahina’s personal services during
the taxable year were performed in each rental property activity
in which a loss deduction is claimed, and (2) that Mrs. Jahina
performed more than 750 hours of services during the taxable year
on each of the claimed properties. Sec. 469(c)(7)(B); sec.
1.469-9(e)(1), Income Tax Regs.
The evidence fails to establish that Mrs. Jahina was a real
estate professional with respect to each of the rental properties
considered separately.5 The requirements of section
469(c)(7)(B) were not met with respect to any of the rental
properties individually. During all of 1996 and until August
1997, Mrs. Jahina had a full-time job with a standard work
requirement of 1,800 hours per year. During the latter months of
1997, she had a part-time job. Even if she performed some of her
rental property activities from her wage jobs, double-counting
some of her time as she claimed, there were five apartment
buildings to be managed. She did not work on any one of these
properties more than she worked on her wage jobs. Further, she
5 With respect to that evidence, the Court disregards as
not credible the summaries prepared by Mrs. Jahina for purposes
of the audit purporting to establish her time spent on the rental
property activities. See Mowafi v. Commissioner, T.C. Memo.
2001-111; Bailey v. Commissioner, T.C. Memo. 2001-296
(“petitioner’s estimates are uncorroborated and do not reliably
reflect the hours that she devoted to her rental real estate
activities”).
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