Business and Personal Finance Dictionary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

• MATERIAL PARTICIPATION
  
  A term defined by the IRS to determine if you worked and were involved in a business activity on a regular basis or if you were only an investor. If you materially participated in a business activity, you are allowed to deduct any losses from that activity against your ordinary income. See also Active Participation.
  
  Back