Jersey City New Jersey Material Participation Agreement in Farm Lease

• Category: Landlord Tenant - Farms and Ranches
• State: Multi-State
• City: Jersey City
• Control #: US-1340920BG
• Format: Word; Rich Text

Description

Material participation refers to a classification the IRS uses that focuses on the taxpayer's level of participation in their business, rental, or income-producing activity. An activity is a single economic unit used to measure gains or losses. If your income-producing activity rises to the level of material participation, then the income you generate will be characterized as active income (i.e., non-passive income) and you can use any losses incurred to offset other categories of income.