Nick, an attorney, owns a separate business (not real estate) in which he partic

Question

Nick, an attorney, owns a separate business (not real estate) in which he participates. who works part-time in the business. 31. If Nick participates for 500 hours and the employee participates for 52 a. 0 hours during the b. If Nick participates for 600 hours and th c. If Nick participates for 120 hours and the employee participates f d. If Nick participates for 95 hours and the employee participates for 5 hours during the e. None of the above. year, Nick qualifies as a material participant the year, Nick qualifies as a material participant. year, Nick does not qualify as a material participant year, Nick probably does not qualify as a material participant. e employee participates for 1,000 hours during for 120 hours during the

Explanation / Answer

Answer would be Option B, an individual who works for more than 500 hours is a material participant irrespective of how much others participate.

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