Passive activities include most rental activities (except for real estate professionals) and business activities in which the taxpayer does not materially participate.

Although Tuon has not materially participated as an ally yet, the fact that she stood by while Mat destroyed her armies was incredible in itself.

Under these rules, nonpassive income includes service income, income from businesses in which the taxpayer materially participates and portfolio income.

A lack of regulatory policy or enforcement still results in the prevalence of "armchair fishermen" (those who own quota but do not materially participate in the fishery).

To be able to use losses from the restaurant to shelter other income, the dentist would have to "materially participate" in the operation.

In its proposed regulations, the I.R.S. says that a taxpayer materially participates when he devotes more than 500 hours to the activity during the year.

It defines passive income as only coming from two sources: rental activity or "trade or business activities in which you do not materially participate."

Thanks to the 1993 tax law, people who materially participate in the real estate business may deduct rental losses from other income.

Congress created the passive income category in 1986 to distinguish income derived from activities in which the taxpayer does not materially participate.

Passive interest is income from activities in which an person does not materially participate, like a limited partnership.