direct participation program(redirected from Direct Participation Plan)
Also found in: Acronyms.
Direct participation program
Direct Participation Program
A business venture, especially, but not necessarily, a limited partnership or an S corporation, that allows the investors to participate in the profits and tax avoidance of some underlying investment. Generally speaking, direct participation programs invest in real estate or energy products. The idea behind a direct participation program is to allow investors to participate in certain tax benefits usually available only to corporations, such as depreciation deductions. However, the United States government has limited many of the tax benefits available to direct participation programs.
direct participation program
An investment program in which tax consequences and cash flows pass directly from the investment to the investors. The purpose of a direct investment program is to permit investors to enjoy certain benefits (for example, depreciation deductions) usually available to a corporation.