Determining Material Participation By Trusts: Types Of Fiduciary Participation-Part 2

As the previous post noted, when determining if a trust or an estate should be considered as materially participating for Code Sec. 1411 purposes, the IRS’s position is that the only party whose participation counts is the fiduciary. Consequently, understanding the types of activities that a fiduciary may participate in that can be counted for the purpose of the Material Participation Determination (“MP Determination”) is an important issue.