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Which of the following statements regarding material participation is TRUE? Multiple choice question. A taxpayer's involvement must exceed 500 hours a year in one activity to be considered materially participating. A taxpayer can be materially participating by being involved in more than one activity if the total hours of involvement meet certain levels. A taxpayer's involvement is measured only in the current year and can NOT be deemed to be materially participating due to prior years of service. A taxpayer must be involved in the business on a full-time basis throughout the year to be considered materially participating.
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Which of the following statements regarding material participation is TRUE? Multiple choice question...
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