- 10 - In addition, although she minimizes the amount of time she spent working for Golden Gate University, teaching even an on- line version of a course must take some time, and this time would have to be factored into any analysis of petitioner’s performance of personal services in 2001. C. Conclusion Because petitioner did not qualify as a real estate professional, we need not consider whether she materially participated in the rental activities. See sec. 469(c)(7)(B). Further, we note that section 469(i) provides an exception to the general rule that passive activity losses are disallowed. A taxpayer who “actively [participates]” in a rental real estate activity can deduct a maximum loss of $25,000 per year related to the activity. Sec. 469(i)(1) and (2). This exception is fully phased out, however, when adjusted gross income (AGI) equals or exceeds $150,000. Sec. 469(i)(3)(A), (E). Petitioners’ 2001 AGI exceeded $150,000. Accordingly, they cannot deduct any amount of the passive activity loss in 2001. But see sec. 469(b) (explaining that disallowed losses may be treated as a deduction allocable to the activity in a succeeding taxable year). Respondent’s determination is sustained, and to reflect our disposition of the disputed issue, Decision will be entered for respondent.Page: Previous 1 2 3 4 5 6 7 8 9 10 11Last modified: November 10, 2007