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

Question

Quizplus · Accepted Answer

According to IRS rules, for an activity to be considered a material participation activity, one must participate for more than 500 hours in a year. As Joyce participates for 100 hours only, she does not meet this threshold. However, since her spouse participates for 450 hours, they may claim the activity as a qualified joint venture and both be treated as material participants.

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