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STR 05: For the 100 Hour Material Participation Test, Does an Individual Mean a Person or a Company?

Tax Smart Real Estate Investors Podcast

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The Importance of Leveraging a Team to Get Things Done

The definition of individual is found in 98981 and it's not an SBU. So basically it is a real person and that is what these regulation sections are using to define individual when we're talking about the material participation rules. If you read the task code as you keep reading after this, you'll eventually start seeing that whenever they use the term individual, it's generally referring to a human being. And then when they say a person, that's when they're referring to that group that could be in a state partnership or trust. Makes sense.

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