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passive activity

Defined in 1 dictionary — U.S. Code

United States Code

26 U.S.C. § 163 — under this chapter

For purposes of this paragraph, the terms “activity”, “passive activity”, and “materially participate” have the meanings given such terms by section 469.

26 U.S.C. § 469 — for purposes of this section

The term “passive activity” means any activity—

(A) which involves the conduct of any trade or business, and

(B) in which the taxpayer does not materially participate.

26 U.S.C. § 469 — for purposes of this section

Except as provided in paragraph (7), the term “passive activity” includes any rental activity.

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