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actually involved in telephone conversations. According to
respondent, the time that petitioner was merely available for
telephone calls should not count as time actually spent providing
personal services in connection with petitioner’s rental real
estate activity.
The disputed hours total 1,440, well over one-half of the
2,440 hours listed on the log. At trial, petitioner explained
that generally he could be reached by telephone 24 hours a day by
tenants or others, but he only counted 4 hours a day, from 6 p.m.
to 10 p.m., as time that he spent in his rental real estate
activity. The disputed hours were not computed with reference to
the amount of time he actually spent on the telephone with
tenants or others. Petitioner recorded some, but not all, of his
actual telephone calls in the log. At trial, petitioner was
unable to approximate the number of hours that he actually spent
on the telephone in connection with his rental real estate
activity.
As we view the matter, allocating 4 hours a day for 360 days
of the year is not a reasonable means of establishing the time
that petitioner actually spent on the phone speaking with tenants
and/or others in connection with his rental real estate activity.
Sec. 1.469-5T(f)(4), Temporary Income Tax Regs., 53 Fed. Reg.
5727 (Feb. 25, 1988). We find it highly unlikely that petitioner
actually spent that much time speaking on the phone on matters
concerning his rental properties. Furthermore, according to the
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