Andre and Vena Nelson - Page 8

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               With respect to the evidence that may be used to establish             
          material participation, temporary Treasury regulations                      
          promulgated under section 469 provide:                                      
               The extent of an individual’s participation in an                      
               activity may be established by any reasonable means.                   
               Contemporaneous daily time reports, logs, or similar                   
               documents are not required if the extent of such                       
               participation may be established by other reasonable                   
               means.  Reasonable means for purposes of this paragraph                
               may include but are not limited to the identification                  
               of services performed over a period of time and the                    
               approximate number of hours spent performing such                      
               services during such period, based on appointment                      
               books, calendars, or narrative summaries.                              
          Sec. 1.469-5T(f)(4), Temporary Income Tax Regs., 53 Fed. Reg.               
          5727 (Feb. 25, 1988); see also sec. 1.469-9(b)(5), Income Tax               
          Regs.  This Court has acknowledged that these temporary                     
          regulations are somewhat ambivalent concerning the records to be            
          maintained by taxpayers, but we have held that the regulations do           
          not allow a post-event “ballpark guesstimate”.  Fowler v.                   
          Commissioner, T.C. Memo. 2002-223; Goshorn v. Commissioner, T.C.            
          Memo. 1993-578.                                                             
               In support of their argument that petitioner was a                     
          qualifying taxpayer under section 469(c)(7)(B) for 2001,                    
          petitioners failed to substantiate the amount of time petitioner            
          spent on his rental real estate activities relative to his full-            
          time job at the Dial Corporation.  Deductions are a matter of               
          legislative grace, and petitioners bear the burden of proving               
          that they are entitled to any of the deductions claimed.  Rule              






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