My wife works for Edward Jones and gets a K-1 for her partnership with them, since she works for Edwards Jones does she materially participate?

[DianeW · Accepted solution]

She would be considered as a material participant if the K1 is for the money she earned as an employee of Edward Jones. If the K1 is strictly for her investments and she receives a W2 for her work from Edward Jones, then the K1 received for her investments would not be considered as material participation unless she shows a 10% or greater ownership on this partneship K1.