8.6.1

Discussion Question 11-11 (LO. 5) For each of the following statements, identify each as either "True" or "False" with regard to the significance of the term material participation in regard to a taxpayer's participation in an activity. a. Losses from a nonrental activity in which the taxpayer materially participates can offset active and portfolio income. b. Material participation is determined by the level of participation of the taxpayer in the activity. c. Section 469 requires a taxpayer to own at least 50% of the business to be a material participant d. A high enough level of participation indicates that the taxpayer has an interest in the activity other than as an investment