Passive

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Passive

Income or loss from business activities in which a person does not materially participate, such as a limited partnership.

Passive

Income (or loss) from an investment in which an individual does not directly participate. The most common types of passive income are rents from property one owns and income from a limited partnership. Some analysts consider income from dividends and coupons to be passive income while others do not. Passive income is taxable, but it is often treated differently from active income.
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