Material Participation Test
- Material Participation Test
- A set of criteria that determines whether a taxpayer is a material participant in a business venture. The material participation test will determine whether business income received by the taxpayer is active or passive.
According to the IRS, if the taxpayer participates in a business activity on a regular, continuous and substantial basis, then the taxpayer materially participates in the business.
There are seven tests the IRS uses to determine whether participation in a business activity is material or not. Two of the criteria that they use are the amount of time spent participating in the business activity and how much control the taxpayer has over the activity. Only one of the tests must be passed in order for the taxpayer to be considered materially involved with the production of income, which would then be deemed active income.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
Medical test — Intervention X ray of a hand. X rays are a common medical test. MeSH … Wikipedia
Commandants of the USAF Test Pilot School — USAF Test Pilot School, Edwards AFB, California The commanding officer of the United States Air Force Test Pilot School (USAF TPS) is known as its Commandant. The commandant manages the school which is a military unit that operates in a… … Wikipedia
2006 North Korean missile test — For other North Korean missile tests, see North Korean missile tests. Two rounds of North Korean missile tests were conducted on July 5, 2006. The Democratic People s Republic of Korea (DPRK or North Korea) reportedly fired at least seven… … Wikipedia
Partial Nuclear Test Ban Treaty — 7 October 1963 President Kennedy signs the Limited Nuclear Test Ban Treaty in the Treaty Room at the White House. L R: William Hopkins, Sen. Mike Mansfield, John J. McCloy, Adrian S. Fisher, Sen. John Pastore, W. Averell Harriman, Sen. George… … Wikipedia
Personal-Service Activity — Any business enterprise with the primary purpose of providing personal services. Personal service activities encompass a wide range of professions, including law, medicine, engineering, design, finance, accounting and even performing arts. As the … Investment dictionary
Partnership taxation in the United States — The rules governing partnership taxation, for purposes of the U.S. Federal income tax, are codified as Subchapter K of Chapter 1 of the U.S. Internal Revenue Code (Title 26 of the United States Code). Partnerships are flow through entities. Flow… … Wikipedia
Royal Observer Corps — Ensign Active 1925–1996 Country … Wikipedia
international relations — a branch of political science dealing with the relations between nations. [1970 75] * * * Study of the relations of states with each other and with international organizations and certain subnational entities (e.g., bureaucracies and political… … Universalium
United States — a republic in the N Western Hemisphere comprising 48 conterminous states, the District of Columbia, and Alaska in North America, and Hawaii in the N Pacific. 267,954,767; conterminous United States, 3,022,387 sq. mi. (7,827,982 sq. km); with… … Universalium
education — /ej oo kay sheuhn/, n. 1. the act or process of imparting or acquiring general knowledge, developing the powers of reasoning and judgment, and generally of preparing oneself or others intellectually for mature life. 2. the act or process of… … Universalium
