Carolyn D. Fenderson - Page 15

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               Rental Unit         Hours per Exhibits  Hours per calendar             
                                   3-J and 4-P             (maximum)                  
               East 149th St.                119.57                   110             
               Euclid Hgts Blvd.        120.81                    80                  
               Wickford Rd.             101.03                    45                  
               Continental              153.53                   117                  
               E. 97th                  115.57                    80                  
               Parkhill                 106.95                   110                  
               E. 131st                 133.73                    60                  
               Parkgate                 103.49                    60                  
               Woodstock              107.50                    97                    
               Total hours         1,062.18            759                            

               Relying upon the entries in petitioner’s calendar, we find             
          that petitioner spent 759 hours performing personal services in             
          connection with her real estate trades or businesses in which she           
          materially participated during 2002.7  Because petitioner spent             
          at least 780 hours performing personal services as an employee of           
          Symantec during 2002 she does not qualify for the provisions of             
          section 469(c)(7).  This means that section 469(c)(2) operates to           
          treat all of petitioner’s real estate activities as passive                 
          activities regardless of whether she materially participated in             
          any of them.                                                                
               It follows that under the provisions of section 469(a)                 
          petitioner is not entitled to the rental loss deduction, and                
          respondent’s disallowance of that deduction is sustained.                   

               7  Whether the hours listed for Woodstock, a property not              
          included on any of the Schedules E, should be taken into account            
          in the analysis is a moot question.  The outcome remains the same           
          whether hours are included or ignored.                                      

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