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 the person's 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 would be considered a material participant in all of these circumstances except for an individual who participated in the activity for at least one of the preceding five taxable years. The statement regarding an individual who participated in the activity for at least one of the preceding five taxable years would be correct if it were phrased as: "the taxpayer must have participated in the activity for any 5 of the preceding 10 taxable years."

Which of the Following Would Not Be Classified as a Material