- 14 -
did not satisfy the 750-hour statutory minimum for any one of
them. See Fowler v. Commissioner, T.C. Memo. 2002-223. Her
testimony, phone records, and calendars reflect that she did not
spend sufficient time on the individual rental property
activities to satisfy either prong of section 469(c)(7)(B).
The Court holds that Mrs. Jahina was not a real estate
professional with respect to petitioners' rental properties
during the years at issue. Because Mrs. Jahina was not a real
estate professional, the rental property activities of
petitioners are treated as per se passive. Sec. 469(c)(2), (4).
Accordingly, the general disallowance rule concerning passive
activity losses applies. Sec. 469(a)(1)(A). Respondent is
sustained on this issue.
The final issue is whether petitioners are liable for the
accuracy-related penalty under section 6662(a) for 1997 in the
amount of $5,216.80. Section 6662(a) provides for an accuracy-
related penalty equal to 20 percent of any portion of an
underpayment of tax required to be shown on the return that is
attributable to the taxpayer’s negligence or disregard of rules
or regulations. Sec. 6662(a) and (b)(1). "Negligence" consists
of any failure to make a reasonable attempt to comply with the
provisions of the Internal Revenue Code. Sec. 6662(c).
"Disregard" consists of any careless, reckless, or intentional
disregard. Id.
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