Which of the following would not be classified as a material participant in an a

ID: 2788773 • Letter: W

Question

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.

According to IRS points (a), (c) and (d) are classified as a condition for material participant in an activity.

Thus point (b) cannot be classified as a material participant in an activity.

The current condition is that the candidate should have attended in the activity for alteast 5 of the preceding 10 taxable years.

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