It depends. You might review the material participation tests for a trade or business here: IRS Pub 925 - Material Participation. Also see the rules for an investor below:
Participation as an investor.
You don’t treat the work you do in your capacity as an investor in an activity as participation unless you’re directly involved in the day-to-day management or operations of the activity.
Work you do as an investor includes:
- Studying and reviewing financial statements or reports on operations of the activity,
- Preparing or compiling summaries or analyses of the finances or operations of the activity for your own use, and
- Monitoring the finances or operations of the activity in a nonmanagerial capacity.
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