direct participation program


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Direct participation program

An investment program enabling investors to directly participate in the cash flow and tax benefits of the partnership invested in by the investor, typically a form of passive investment.

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.

direct participation program (DPP)

An investment vehicle that allows parties to directly participate in the cash flows and tax benefits of the underlying property,without requiring any active management by the investor.The investment will be shares of a partnership,a subchapter S-corporation, a limited liability company, or some other entity that files an informational return with the IRS but does not itself have any taxable income or deductible losses.
References in periodicals archive ?
The awards panel reflected on the attractive nature of a number of Breitling's investment proposals, such as the firm's Direct Participation Programs.
OTCBB securities include national, regional, and foreign equity issues, warrants, units, ADRs, and Direct Participation Programs (DPPs).
National, regional and foreign equity issues, warrants, units, American Depositary Receipts (ADRs) and Direct Participation Programs are all eligible for trading on the Markets.