PASSIVE ACTIVITY

By SovConn | October 11, 2013

passive activity.Tax. A business activity in which the taxpayer does not materially participate and therefore does not have immediate control over the income. • A typical example is the ownership and rental of real property by someone not in the real-property business. [Cases: Internal Revenue  3418. C.J.S. Internal Revenue § 199.]

[Blacks Law 8th]

Posted in Law Dictionary Definitions