Series 65: 4.5.5.1.1 Tax Advantages Of DPPs

Taken from our Series 65 Online Guide

4.5.5.1.1  Tax Advantages of DPPs

DPPs fund risky, capital-intensive businesses. As such, they may generate losses, especially in the beginning, that the partners can use to offset passive income.

The IRS defines passive income as primarily income from rental property and limited partnerships, including DPPs. The IRS considers the investor not to be actively involved in earning

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