An individual is considered to materially participate in an activity if any of the following tests are met with the exception of
A)the individual participates in the activity for more than 500 hours during the year.
B)the individual participates in the activity for 75 hours during the year,and that participation is more than any other individual's participation for the year.
C)the individual has materially participated in the activity in any five years during the immediate preceding 10 taxable years.
D)the individual's participation in the activity for the year constitutes substantially all of the participation in the activity by all individuals.

Question

Quizplus · Accepted Answer

The exception is participating for 75 hours and having more participation than others, as it does not meet the standard tests for material participation which generally require more hours or consistent participation over several years.

An Individual Is Considered to Materially Participate in an Activity