A significant participation passive activity is any trade or business activity in which you participated for more than 100 hours during the tax year but did not materially participate.
If your gross income from all significant participation passive activities exceeds your deductions from those activities, then a part of your net income from each significant participation passive activity is treated as nonpassive income.
If your hours of participation in all activities adds up to more than 500 hours then none of the activities are passive activities. Just report your income and losses from these activities on the forms and schedules you normally use.