The taxpayer's participation is more than 100 hours during the year, and no other individual participates
more hours than the taxpayer (including nonowners).
The regulations provide that the term tax shelter promoter includes a tax shelter organizer under section 6111(e)(1) and any other person who participates
in the organization, management or sale of a tax shelter or any person related (within the meaning of section 267 or 707) to such person.
information professionals participate
and contribute, they learn and become
Since it is expected that everyone participate
fully, no one is permitted to be anonymous.
Thus you as a forest owner can qualify under this test even if another individual or co-owner participates
in the woodland operation more than you do during the tax year in question.
a percentage) is sufficient for an instrument to be deemed to participate
in corporate growth to a significant extent.
Specifically, in such a case, the House and Senate versions of the Revenue Reconciliation Act each provide that a corporate taxpayer that signs a confidential agreement in connection with a "tax shelter" offering must either (i) send a written notice to the promoter of the taxpayer's decision not to participate
in the shelter, or (ii) register the shelter with the Secretary of the Treasury, even if the taxpayer ultimately decides not to participate
in the shelter.
The individual participates
in the activity for more than 100 hours during the tax year, and such individual's participation in the activity for the tax year is not less than the participation in the activity of any other individual (including individuals who are not owners of interests in the activity) for such year;
Therefore, an individual who owns, in the same entity, both limited and general partnership interests (even if the latter is owned through another passthrough entity) should be able to use the following additional tests to determine whether he materially participates
in the entity's activities for the tax year:
If the entity is a C corporation, the five-out-of-10-year rule does not apply; an individual may not actively participate
in a C corporation.
The other criterion that could potentially be relied on considers a taxpayer to be a material participant if he participates
for more than 100 hours and his participation for the tax year is not less than the participation in the activity of any other individual.