If you are just a 40% owner in a LLC, and the K1 is only for rent on property of the nursery, am I a material participant

[slewis501948]

I work at a landscape company and a LLC was formed to charge the nursery rent on the land which I am a 40% owner of that land.  Am I considered a Material Participant for 1065 K1 purposes?

[DDollar]

Material participation in this context means participation on a “regular, continuous and substantial” basis. Unless you're a limited partner, you're deemed to materially participate in a business activity if you meet just one of seven tests: 

1. You participate in the activity at least 500 hours during the year.
2. Your participation constitutes substantially all of the participation for the year by anyone, including nonowners.
3. You participate more than 100 hours and as much or more than any other person.
4. The activity is a “significant participation activity” — that is, you participate more than 100 hours — but you participate less than one or more other people yet your participation in all of your significant participation activities for the year totals more than 500 hours.
5. You materially participated in the activity for any five of the preceding 10 tax years.
6. The activity is a personal service activity in which you materially participated in any three previous tax years.
7. Regardless of the number of hours, based on all the facts and circumstances, you participate in the activity on a regular, continuous and substantial basis.