Carolyn D. Fenderson - Page 13

                                       - 12 -                                         
               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).              

Page:  Previous  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  Next 

Last modified: March 27, 2008