Which taxpayer would not be considered a material participant of an activity?
A) taxpayer materially participated in the activity for any five of the preceding ten years
B) taxpayer participated on a regular, continuous, and substantial basis during the year
C) taxpayer participated 95 hours during the year and participation is not less than any other participants for the year
D) taxpayer participated in the activity for 995 hours during the year
E) None of the above

Question

Quizplus · Accepted Answer

A taxpayer is not considered a material participant if they only participated for 95 hours during the year, even if their participation is not less than any other participants. Material participation generally requires more substantial involvement.

Which Taxpayer Would Not Be Considered a Material Participant of an Activity