Kevin Kennedy spent 465 hours in the tax year working with Partnership V, a hardware store. He also worked 164 hours with an architecture partnership that designs and builds backyard gazebos as the primary builder. Finally, he spent 193 hours launching a new business building bandstands for concerts. None of the entities are publicly traded. He is considered a(n) _______________ for tax purposes.

Employee.

Active participant.

Material participant.

Entrepreneur.