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Petitioner’s view, however, presupposes that the amounts of
hours shown on Exhibits 3-J and 4-P are supported by entries made
in her calendar. This does not appear to be the case.
A number of inconsistencies between items shown on
petitioner’s 2002 return, her calendar, and the exhibits were
brought out during petitioner’s cross-examination at trial.
Furthermore, upon careful review of those documents, we are
unable to reconcile estimates of time shown on Exhibits 3-J and
4-P with entries made in petitioner’s calendar. On many dates,
the estimate of time spent on a particular activity exceeds
the amount of time shown on that calendar for that date. For
example, on Exhibit 4-P petitioner shows more than 9 hours spent
performing various types of services at Parkgate on January 3,
2002. The hours presumably are incorporated in the total hours
shown for that property on Exhibit 3-J. Entries on her calendar
for that date, however, do not support the number of hours or the
type of activities described in Exhibit 3-J.
A taxpayer can establish personal services performed in an
activity by any reasonable means. Reasonable means “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).
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