Effective Dates: 11/15/2002 - Present Previous | Next

TN 7 (06-90)

RS 01803.715 Material Participation - Test No. 3

A. POLICY

1. General

A landlord materially participates if he performs a significant amount of physical labor in the production of the commodity.

2. Exclusion

Do not consider any labor the landlord performs as an employee of his tenant.

B. DEFINITION

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.

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0301803715
RS 01803.715 - Material Participation - Test No. 3 - 11/15/2002
Batch run: 07/03/2014
Rev:11/15/2002