Passive Investor

Passive Investor - Passive Investor is a stock securities investor who lends currency, but does not actively contribute to the management table. A Limited Partnership as in a real estate development project is one example. Passive stock investors deduct investment losses only when and if gains from the stock investment exceed their investment losses. Income earned by a passive investor is subject to the Internal Revenue Service Alternative Minimum Tax, something to keep in mind. It is an individual who invest currency, but does not manage the business or property involved in the venture. This is good to remain in the background instead.

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