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To establish the amount of time petitioners spent on their
rental real estate activities in the present case, petitioners
introduced a spreadsheet and a daily work log summarizing the
work activities they performed on a daily basis for the Sanibel
property and Port Deposit Property. The daily work log was not
prepared contemporaneously as petitioners performed each
activity, but it was composed by petitioners in preparation for
an examination of their returns by respondent. The spreadsheet
lists the following hours spent by petitioners at their rental
properties:
Year Port Deposit property Sanibel property Total
1999 283 606 889
2000 311 494 805
Petitioner testified that he worked 12 hours per day whenever he
was at the Sanibel property. The spreadsheet also lists
petitioners’ time spent rendering personal services for their own
residence and for the properties owned by petitioner’s parents.
Petitioners have not met their burden of proving that they
were in the real property trade or business and that their rental
real estate activity is not a passive activity for the 1999 and
2000 taxable years. While petitioners did not file their
election to aggregate activities with their joint returns for
1999 and 2000, we need not decide whether we should look at the
total number of hours during each of these taxable years such
that petitioners spent 889 hours in 1999 and 805 hours in 2000.
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