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

question 26

Multiple Choice

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

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

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Definitions:

Glucocorticoids

A class of corticosteroids that are involved in the metabolism of carbohydrates, proteins, and fats and have anti-inflammatory, immunosuppressive, and anti-allergic properties.

Hypersecretion

The condition of excessive production of hormones or other bodily substances.

Biguanides

A class of oral hypoglycemic agents used to treat type 2 diabetes by reducing glucose production in the liver.

Glucose

A colorless or yellow, thick, syrupy liquid obtained by the incomplete hydrolysis of starch; a simple sugar.