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

question 28

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:

Internal Locus

The belief that one's actions and outcomes are largely under personal control rather than being influenced by external forces.

Ethical Decision Making

The practice of appraising and opting for choices in a manner that is in agreement with ethical norms.

Difference Principle

A principle suggesting that societal inequalities are only justified if they benefit the least advantaged members of society.

Economic Equalities

The state or goal of fair distribution of wealth and resources among individuals or groups, aiming for minimized financial disparities.