Material Participation is a term defined by the IRS to determine if you worked and were involved in a business activity on a regular basis or if you were only an investor. If you materially participated in a business activity, you are allowed to deduct any losses from that activity against your ordinary income. See also Active Participation.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). Material Participation. Retrieved September 22, 2026, from http://smartdefine.org/material_participation/definitions/1157961 |
| Chicago | Barry Goldsmith. 2010. "Material Participation" http://smartdefine.org/material_participation/definitions/1157961 (accessed September 22, 2026). |
| Harvard | Barry Goldsmith 2010, Material Participation, Smart Define, viewed 22 September, 2026, <http://smartdefine.org/material_participation/definitions/1157961>. |
| MLA | Barry Goldsmith. "Material Participation" 21 October 2010. Web. 22 September 2026. <http://smartdefine.org/material_participation/definitions/1157961> |