pas·sive /'pa-siv/ adj: not involving, deriving from, or requiring effort or active participation
imposed a passive duty not to interfere; specif: of, relating to, or being business activity in which the investor does not have immediate control over the income-producing activity
passive income
passive losses
◇ Any rental activity is designated a passive activity under the Internal Revenue Code. Investment income is not considered income from a passive activity.
pas·sive·ly adv
pas·sive·ness n
Merriam-Webster’s Dictionary of Law. Merriam-Webster. 1996.