Find a Qualified Attorney Near You
Find a Qualified Attorney Near You
Search by legal issue and/or location
Enter information in one or both fields. (Required)
term:
Passive
passive adj
: not involving, deriving from, or requiring effort or active participation [imposed a duty not to interfere]
;specif
: of, relating to, or being business activity in which the investor does not have immediate control over the income-producing activity [ income] [ losses] NOTE: Any rental activity is designated a passive activity under the Internal Revenue Code. Investment income is not considered income from a passive activity.
pas·sive·ly adv
pas·sive·ness n
Source: Merriam-Webster’s Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.