Which of the following would not be classified as a material participant in an activity?
A)An individual who participates more than 100 hours a year and whose participation is not less than any other individual's participation
B)An individual who participated in the activity for at least one of the preceding five taxable years
C)An individual who participates in an activity regularly, continuously, and substantially
D)An individual who participates in an activity for more than 500 hours a year

Question

Quizplus · Accepted Answer

An individual who participated in the activity for only one of the preceding five taxable years would not be classified as a material participant because they did not meet any of the other criteria for material participation (such as a certain number of hours, regular and continuous participation, etc.).

Which of the Following Would Not Be Classified as a Material