- 10 - Next we turn to the personal services performed by petitioner in real estate trades or businesses in which she materially participated. For purposes of section 469, a taxpayer materially participates in an activity only if the taxpayer is involved in the operation of the activity on a basis which is regular, continuous, and substantial.4 Sec. 469(h)(1). We are satisfied that with respect to each real estate activity involving a rental unit, petitioner’s “participation in the activity for the taxable year constitutes substantially all of the participation in such activity of all individuals (including individuals who are not owners of interests in the activity) for such year”. Sec. 1.469- 5T(a)(2), Temporary Income Tax Regs., 53 Fed. Reg. 5725 (Feb. 25, 1988). Consequently, for purposes of section 469, petitioner may be treated as having materially participated in the operation of each of the rental units, and we proceed as though she did.5 4 Circumstances that, in and of themselves, establish material participation in a given activity can be found in sec. 1.469-5T(a), Temporary Income Tax Regs., 53 Fed. Reg. 5725 (Feb. 25, 1988). 5 Argument could be made that for purposes of sec. 469, a taxpayer’s participation in an activity is not treated as “regular, continuous, and substantial” during any year if the individual participates in the activity for 100 hours or less during that year. See Oberle v. Commissioner, T.C. Memo. 1998- 156; sec. 1.469-5T(b)(2)(iii), Temporary Income Tax Regs., 53 Fed. Reg. 5726 (Feb. 25, 1988). Under the circumstances we need not decide the point.Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 NextLast modified: March 27, 2008