Material participation includes all of the following except:
A)Material participation in 5 of the 10 preceding years.
B)Taxpayer materially participated in the five preceding years in a personal service activity.
C)The taxpayer has 500 or more hours of participation
D)All are material participation standards.

Question

Quizplus · Accepted Answer

All the options listed (A, B, C) are indeed standards for determining material participation according to IRS rules, which means none of them is an exception.

Material Participation Includes All of the Following Except