Joyce owns an activity (not real estate) in which she participates for 100 hours a year; her husband participates for 450 hours. Joyce qualifies as a material participant.

Question

Quizplus · Accepted Answer

Joyce satisfies the material participation test, which states that an individual must participate for at least 500 hours in the activity during the tax year. Even though her participation is only 100 hours, her husband's participation of 450 hours can also count towards the 500-hour requirement if they file a joint tax return. Therefore, Joyce qualifies as a material participant in the activity.

Joyce Owns an Activity (Not Real Estate) in Which She