Material Participation

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  • Bonnie
    Senior Member
    • Jan 2007
    • 568

    #1

    Material Participation

    Reading all about material participation in TB and I find a list of 7 ways to qualify. Does the taxpayer only have to meet one of these 7 to qualify?
  • appelman
    Senior Member
    • Jan 2010
    • 1195

    #2
    Excuse my ignorance.

    But what is TB?
    Evan Appelman, EA

    Comment

    • Bonnie
      Senior Member
      • Jan 2007
      • 568

      #3
      Tax Book the source of this message board

      Comment

      • DaveinTexas
        Senior Member
        • Jan 2006
        • 731

        #4
        wow, it has been a long week huh?

        Originally posted by appelman
        But what is TB?
        only messing with you!

        yes, just one of the tests must be met, on a year by year basis. So it is possible that a taxpayer will materially participate one year and not the next, so a review of the tests must be done annually.

        please see the attached flowchart from taxtools (I highly recommend investing in this software; very handy tools).

        Also remember that a taxpayer can use the material participation of his/her spouse to qualify him/her for participation.
        Attached Files
        Circular 230 Disclosure:

        Don't even think about using the information in this message!

        Comment

        • thomtax
          Senior Member
          • Nov 2006
          • 1276

          #5
          Originally posted by appelman
          But what is TB?
          What is probably confusing things is that just about everyone refers to it as TTB - The Tax Book, not TB.

          LT
          Only in government or politics is a "cut in spending" really an increase. It's just not as much of an increase as they wanted it to be, therefore a "cut".

          Comment

          • appelman
            Senior Member
            • Jan 2010
            • 1195

            #6
            What I was trying to figure out was...

            What the devil was "material participation in TB?" Either it was an incurable disease or a new kind of investment!
            Evan Appelman, EA

            Comment

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