I could really use some help interpreting this, please.
I am a full-time employee at a privately owned firm and a couple years ago was granted a small amount of equity in the company. Based on this I receive a small extra bonus annually in the form of a "partnership distribution". For this I am issued a K-1 after year-end.
For my TurboTax k-1 questions, I am asked if I materially participated in the business activities during the year. Should my answer be "yes" because I work there >500 hours/year? Or is it "no" because I am not running the company - just participating in an operational capacity as an employee?
Thank you!
