Question

An individual is considered to materially participate in an activity if any of the following tests are met with the exception of

A) the individual participates in the activity for 75 hours during the year, and that participation is more than any other individual's participation for the year.
B) the individual has materially participated in the activity in any five years during the immediate preceding 10 taxable years.
C) the individual participates in the activity for more than 500 hours during the year.
D) the individual's participation in the activity for the year constitutes substantially all of the participation in the activity by all individuals.

Answer 1

The individual is considered to materially participate in an activity based on certain criteria, and one of the given options does not meet those criteria.

Step-by-step explanation:

The subject of this question is Business and the grade level is College.

An individual is considered to materially participate in an activity if any of the following tests are met with the exception of:

1. The individual participates in the activity for 75 hours during the year, and that participation is more than any other individual's participation for the year.
2. The individual has materially participated in the activity in any five years during the immediate preceding 10 taxable years.
3. The individual participates in the activity for more than 500 hours during the year.
4. The individual's participation in the activity for the year constitutes substantially all of the participation in the activity by all individuals.

The correct answer is A) the individual participates in the activity for 75 hours during the year, and that participation is more than any other individual's participation for the year.