The petitioner chartered boats and entered into a management agreement with another organization that was responsible for marketing boats, setting charter prices, booking charters, maintaining records, collecting money and cleaning and maintaining the boats. The petitioner was paid "net charter revenue," and the petitioner paid the organization a "turnaround fee" for each charter. The petitioner also had the use of each of his two boats for two, two-week periods annually, paying for various expenses. The activity encountered a loss, and the issue was whether the petitioner could satisfy the material participation test of Treas. Reg. Sec. 1.469-5T(a)(3)(the "more than others" test - more than 100 hours with more participation in the activity than anyone else). The petitioner (and spouse) reconstructed their time to show 470 hours for one year and 732.5 hours in the activity for another year. While the 470 was less than the 500 hours required by Treas. Reg. Sec. 1.469-5T(a)(1), but did meet the 100 hour test. The petitioner was able to establish that their hours exceeded the hours of any other person in the activity. Kline v. Comr., T.C. Memo. 2015-144.