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Mrs. Hanna 4 hours to construct and additional time each month
to maintain. During their visits to Florida in 2000,
petitioners contend Mrs. Hanna spent 60 percent of her waking
hours on rental activities. Mrs. Hanna admitted this last
figure was the result of “guesstimating”, but she maintained
that the 89-page narrative summary provided a more accurate
estimate of the time she spent on the rental activities in 2000.
Applying the test of section 469(c)(7)(B) to the facts of
this case, petitioners first must prove that more than one-half
of Mrs. Hanna’s personal services performed in trades or
businesses were performed in real property trades or businesses.
See sec. 469(c)(7)(B)(i). Because Mrs. Hanna was paid for 2,119
hours of work as a computer consultant, she must have spent more
than that amount of time performing services for the rental
activities.
Petitioners argue that Mrs. Hanna satisfied this
requirement because she performed 2,610 hours of services in the
rental activities. As described above, however, petitioners did
not calculate this figure by reference to appointment books or
calendars. In fact, Mrs. Hanna admitted that she was not good
at recording the time she spent on the rental activities.
Furthermore, although petitioners produced a narrative summary,
the accuracy of this document is suspect. Petitioners prepared
the narrative summary shortly before trial, approximately 5
years after the events in question occurred. More importantly,
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