Thomas E. and Susan L. Truskowsky - Page 16

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          in the activity) for such year.  Mr. Deitch testified that he               
          participated in petitioners' cattle activity, on average, about             
          1-1/2 hours day.  When his daily participation is multiplied by             
          365, it is well over 500 hours a year, more than that of                    
          petitioners.                                                                
               At trial there was some testimony and cross-examination                
          suggesting that Mr. Deitch did not contribute as many hours to              
          the activity as that to which he testified.  On the other side of           
          the scale, there was testimony and evidence suggesting that                 
          petitioners' logs exaggerate the number of hours they contributed           
          to the activity.  The result is that the Court finds from a                 
          preponderance of the evidence that petitioners' level of                    
          participation in their cattle activity did not exceed Mr.                   
          Deitch's day-to-day participation in the activity in either year.           
          Petitioners do not meet the requirements of Test 3.                         
                    Test 7                                                            
               Although petitioners have not met the requirements of either           
          of the tests on which they relied in their trial memorandum and             
          at trial, there is an additional test under which they might yet            
          qualify.  Based on all the facts and circumstances, if                      
          petitioners nevertheless participated in the Limousin cattle                
          activity on a "regular, continuous, and substantial" basis during           
          such year, they have materially participated even if they do not            








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