HP LU LIGGEL one other post by Sunday at midnight. ETHICS Several years ago, Lou, together with his friend Carlo opened an Italian restaurant in this neighborhood. The venture was formed as an with ou tecelving a 75 percent ownership interest and Carlo receiving the remaining 25 DOTCODECHECShip Interest White Lour was primarily responsible for operating the restau- rant, Carlo came in only on weekends because he held a full-time job elsewhere. To document the time he spent in the restaurant Carlo. To corded the number of hours he had worked in a logbook at the end of every shift. This year bal cause of a downturn in the local economy, the restaurant showed a loss for the first time. To be able to deduct his share of this loss when he is his tax return. Carlo would like to tablish that he worked more than 500 hours during the voar and is therefore material participant in the restaurant. His logbook shows that he worked for 502 hours during the year however he rounded up to the nearest hour at the end of every suit to simplify his record keeping For example, if he worked 4 hours and 25 minutes during a shift he wrote 5 hours in the logbook Should Carlo claim that he is a material partici- pant on the basis of the hours recorded in his logbook and deduct his shate at the loss? What would you do? Search entries or author Unread Reply