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Direct Participation Program - DPP

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A business venture designed to let investors participate directly in the cash flow and tax benefits of the underlying investment. DPPs are generally passive investments that invest in real estate or energy-related ventures. Also known as a "direct participation plan".

Notes:

DPPs are usually organized as a limited partnership, a subchapter S corporation or a general partnership. Although they have been generally used as tax shelters, tax legislation has severely curtailed their tax benefits.

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