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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.
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