Material Participation Standard: An Analysis of Its Relevance in Tax Planning for Farmers, The
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Authors
Marcil, Michaela M.
Issue Date
1981
Volume
14
Issue
Type
Journal Article
Language
Keywords
Alternative Title
Abstract
INTRODUCTION|In the minds of certain administrators and legislative drafts- men, there exists a carefully chiseled concept which has far reaching ramifications in the areas of social security law and estate taxation. This concept is broadly described as "material participation" in the social security regulations and the tax code. One who is found to be materially participating in his farming operation or other business venture opens the door to a special status in the law. A host of obligations and benefits follows this elusive status. And elusive it is, for the minds of the tax administrators and the legislative draftsmen are not freely accessible to the tax and business planner. We must therefore seek to glean glimpses of their creation in more indirect ways.|Thus, it is the purpose of this comment to describe some of the various scenarios where the idea of material participation plays a part in our law, with particular emphasis on its application to federal estate taxation of farming operations. The astute business planner will be trying either to avoid this special status and its attendant obligations, or to court its protective sanctum and qualify for several benefits. In either case, it is important to have an accurate idea of what material participation means. Therefore, this comment is also designed to define the concept of material participation...
Description
Citation
14 Creighton L. Rev. 921 (1980-1981)
Publisher
Creighton University School of Law