A 2003 federal district court case has focused attention on whose involvement counts for purposes of determining whether the material participation requirement is met for passive loss purposes in the case of a trust. That question is highly relevant for any taxpayer but is particularly important for a trust inasmuch as the trustee may not be the sole contributor to material participation.
Harl, Neil E.
"Material Participation by a Trust for Passive Activity Loss Purposes,"
Agricultural Law Digest: Vol. 14
, Article 1.
Available at: https://lib.dr.iastate.edu/aglawdigest/vol14/iss11/1