TN 7 (06-90)
RS 01803.715 Material Participation - Test No. 3
A landlord materially participates if he performs a significant amount of physical labor in the production of the commodity.
Do not consider any labor the landlord performs as an employee of his tenant.
Assume physical labor is significant if the landlord performs at least 100 hours of physical labor in five or more different weeks during the year.
NOTE: 100 hours will always result in Test No. 3 being met. Lesser amount of work may meet the requirement depending on other circumstances.