Which person would generally be treated as a material participant in an activity?
A) A participant in a rental activity.
B) A limited partner.
C) A LLC member not involved with management of the LLC.
D) A general partner.

Question

Quizplus · Accepted Answer

Limited partners and participants in rental activities are generally deemed to be passive participants. In addition, non-managing LLC members would typically not be treated under the regulations as having a level of involvement that is "regular, continuous, and substantial." However, general partners are likely to satisfy this definition of material participation.

Which Person Would Generally Be Treated as a Material Participant