Which Taxpayer Would Not Be Considered a Material Participant of an Activity

question 11

Multiple Choice

Which taxpayer would not be considered a material participant of an activity?

• A)Taxpayer materially participated in the activity for any five of the preceding ten years.
• B)Taxpayer participated on a regular, continuous, and substantial basis last year.
• C)Taxpayer participated 95 hours last year and participation is not less than any other participants for the year.
• D)Taxpayer participated in the activity for 995 hours last year.
• E)None of the choices are correct.

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Definitions:

Rescission

The legal act of cancelling or terminating a contract, returning all involved parties to their original positions.

Reliance

The act of depending on or trusting in something or someone, often in the context of reasoning or making decisions.

Municipal Bylaw

Local government rules or regulations enacted by municipal authorities to govern matters within their jurisdiction, such as zoning, noise, and public behavior.

Permit Approval

The process of obtaining formal authorization from authorities to engage in certain activities or operations.