George, an ophthalmologist, owns a separate business (not real estate) in which he participates. He has one employee who works part-time in the business. Which of the following statements is correct? a. If George participates for 500 hours and the employee participates for 520 hours during the year, George qualifies as a material participant. b. If George participates for 600 hours and the employee participates for 1,000 hours during the year, George qualifies as a material participant. c. If George participates for 95 hours and the employee participates for 5 hours during the year, George probably does not qualify as a material participant. Od. If George participates for 120 hours and the employee participates for 120 hours during the year, George does not qualify as a material participant.

George, an ophthalmologist, owns a separate business (not real estate) in which he participates. He has one employee who works part-time in the business. Which of the following statements is correct? a. If George participates for 500 hours and the employee participates for 520 hours during the year, George qualifies as a material participant. b. If George participates for 600 hours and the employee participates for 1,000 hours during the year, George qualifies as a material participant. c. If George participates for 95 hours and the employee participates for 5 hours during the year, George probably does not qualify as a material participant. Od. If George participates for 120 hours and the employee participates for 120 hours during the year, George does not qualify as a material participant.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter3: Business Income And Expenses

Section: Chapter Questions

Problem 25P: Lew is a practicing CPA who decides to raise bonsai as a business. Lew engages in the activity and...

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