| 释义 |
Material Participation Material ParticipationThe regular involvement in the running of a business. Material participation separates passive income (that is, the income of an investor) and active income (that is, wages, salary, and profit from one's business). For that reason, material participation affects the tax treatment of income.Material ParticipationThe tax law places limits on the deductibility of passive income. Passive income does not include an activity in which an individual is a material participant. A material participant is an individual who participates in an activity for more than 500 hours. An individual is also a material participant if the individual's participation was substantially all the participation in the activity of all individuals for the tax year, including the participation of individuals who did not own any interest in the activity. An individual may be considered to be a material participant if the individual satisfies other tests. See IRS Publication 925. |