passive activity

passive activity definition - business

passive activity

  1. An activity involving a trade or business in which the taxpayer does not materially participate.
  2. Any engagement in real estate rental activity.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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