释义 |
direct participation program
Direct participation programAn 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 ProgramA 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.AcronymsSeeDPP |