Paul M. and Wanda E. Harmon - Page 10

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          2001, satisfying section 469(c)(7)(B)(i).  We disagree.  Although           
          petitioner was contracted to perform–-and was paid for--full-time           
          employment with Casey, she argues that she worked only 8 hours              
          per week.  The evidence, however, contradicts petitioners’ claim.           
          See Tokarski v. Commissioner, 87 T.C. 74, 77 (1986) (stating “we            
          are not required to accept the self-serving testimony of                    
          petitioner * * * as gospel.”).                                              
               The job description for petitioner’s position at Casey                 
          specifically states that her position at times required workweeks           
          in excess of 40 hours.  Her employment contracts were for full-             
          time employment during the relevant time periods.  Even Casey’s             
          payroll records indicate that petitioner worked a full-time                 
          schedule:  2,080 per year is the equivalent of 40 hours per week.           
          Although it may be possible that she did not work a 40-hour week            
          each week as documented by payroll–-professional salaried                   
          employees often are not on a fixed schedule yet something must be           
          entered into the accounting software--it is not reasonable to               
          assume that a nonprofit organization would pay anyone in excess             
          of $55,000 per year plus benefits for working only 8 hours per              
          week.7  The 2,080 hours Casey’s payroll records show far exceed             
          the 774 hour maximum petitioner would have been able to work and            
          still meet the test outlined in section 469(c)(7)(B).                       

               7  That works out to approximately $132 per hour.                      

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