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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Central Trade and Transfer is an online auction site for non-traded real estate investment trusts and other direct participation programs, helping provide liquidity for otherwise illiquid investments through the secondary market.
“It's unfortunate that I have spent the time, money, and emotion defending against these baseless claims, but I have an obligation to my employees and my partners to fight these claims and preserve the ability of my partners to continue to enjoy the benefits of direct participation programs,” said Cagle.
Once you pass this exam, you may sell mutual funds and variable annuities as well as individual securities (stocks and bonds) and get involved in direct participation programs (real estate, oil and gas and a variety of other business opportunities).
The program also provided comprehensive training on investment banking, securities laws and regulations, trading procedures, margin accounts, customer accounts and direct participation programs. During the program, the participants were taken through an overall introduction into the Securities industry, and discussed the Servicing and Maintaining of Customer Accounts, Equities, the fundamentals of Debt, Exchange Markets, the Over-the-Counter Market, Margin Accounts, Basic Option Positions and Economics and Securities Analysis.
Rules at the NASD, Washington, now prohibit payment and acceptance of non-cash compensation such as entertainment and travel expenses in connection with the sale of direct participation programs, variable insurance contracts and public offerings of real estate investment trusts.
She also holds Series 22 (Direct Participation Programs Representative) and Series 65 (Investment Adviser Representative) securities licenses and is an affiliated agent with the Trustmont Group, a FINRA registered Broker Dealer.
Unless NASD is talking about registered index annuities, this request is a bit of a puzzler because the language of Rule 2210 talks about mutual funds, variable contracts, direct participation programs, and never mentions fixed annuities.
participates in the development of fields in the oil & gas industry throughout the entire state of Texas offering oil and gas investment opportunities through investment joint ventures and direct participation programs. These programs provide the opportunity for investors to potentially take advantage of unique tax benefits and potential cash flow through oil and gas investments.

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