The petitioner founded a company of which he turned over day-to-day management to his son and moved to Florida (from company headquarters in Louisiana). When the business started to fail, he visited the business more often and increased his efforts on research and development, even inventing a new products and securing a new line of credit. The business carried in excess of a $3 million loss from 2008 to a prior year and received a refund of approximately $1 million. IRS denied the loss on audit on the basis that the petitioner was passive. The petitioner claimed that he spent more than 100 hours in the business during the tax year at issue and that his involvement for those hours was regular, continuous and substantial. The court agreed with the petitioner, based on all of the facts and circumstances, that he was materially participating for purposes of the passive loss rules. The court noted that. The court did not require the petitioner to produce a log book or calendar recording his participation. Wade v. Comr., T.C. Memo. 2014-169.