James V. and Judith M. Patterson - Page 7




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          have met, is satisfied with respect to an individual taxpayer               
          when:                                                                       
                    The individual participates in the activity for more              
               than 100 hours during the taxable year, and such                       
               individual’s participation in the activity for the taxable             
               year is not less than the participation in the activity of             
               any other individual (including individuals who are not                
               owners of interests in the activity) for such year;                    
          Sec. 1.469-5T(a)(3), Temporary Income Tax Regs., 53 Fed. Reg.               
          5726 (Feb 25, 1988).  Generally, participation by an individual’s           
          spouse is treated as participation by the individual.  Sec.                 
          469(h)(5).                                                                  
               The only evidence presented regarding the amount of time               
          petitioners participated in the rental of the condominium unit is           
          their own general testimony.  Thus, it is difficult to estimate             
          the exact amount of time petitioners spent at the condominium, as           
          well as what portion of this time was for business versus                   
          personal purposes.  However, it appears that petitioners spent              
          approximately 2 weeks per year at the condominium--1 week in the            
          Spring and 1 week in the Fall.  Even assuming petitioners spent a           
          full 8 hours each weekday working on the condominium, this would            
          amount to only 80 hours per year.  The amount of time petitioner            
          spent in paying condominium-related expenses throughout the year            
          would have been nominal and would not have amounted to 20 hours             
          per year.  We find that petitioners did not participate in the              
          activity for more than 100 hours in either of the years in issue.           







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