To be counted toward material participation, your advice and consultation must be in connection with what, where, when, or how things are to be done in producing the commodities. It need not be connected directly with the actual planting, cultivating and harvesting work, but may be connected with:
Deciding what crops are to be planted;
The type of seed to be used;
How much fertilizer or spray should be used; or
When and at what price the crops should be sold.
Note: Advice and consultation does not count toward material participation unless the arrangement provides for it.
No, advice and consultation alone, regardless of how frequent, is not material participation. If you do other things, such as making periodic inspections and doing some of the work, this may be enough, together with advice and consultation, to be material participation.
Last Revised: March, 2001
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