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New Member
posted Jan 26, 2022 7:27:35 PM

How do I know if I actively participated/played an active role in the operation of a business for food delivery driving work? The expamples given are confusing.

I do not know if I was actively involved. When I click "Learn more" these are the examples given.

Example 1:
You worked 200 hours in your business and your employee worked 100 hours. You were actively involved.

Example 2:
You worked 200 hours in your business and your employee worked 300 hours. You were not actively involved. (If you work more than 500 hours in the business, it doesn't matter how many hours others work.)

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1 Replies
Expert Alumni
Jan 26, 2022 7:45:37 PM

Active participation does not need to have regular, continuous, and substantial involvement in the operations. Instead, a taxpayer is considered to actively participate if he or she makes management decisions in a significant and bona fide sense.  When you say food delivery, do you mean like Door Dash or ubereats?  If so, you are definitely an active participant if you are doing the deliveries.  In contrast, active participation would not be if you bought a car and someone else did the deliveries and decided which deliveries to make, getting the gas for the car, and maintenance etc.