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:

Decay Theory

The hypothesis that memory fades and disappears over time if not used or revisited.

Interference

A phenomenon in which the learning of new information hampers the ability to recall previously learned information.

Repression

A defense mechanism where undesirable thoughts, memories, or desires are unconsciously pushed out of conscious awareness.

Retrograde Amnesia

A type of memory loss where an individual cannot recall information that was learned before a specific event or injury.