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.