Passive Assets definition
Passive Assets. For purposes of this test, “passive assets” are those assets which generate (or are reasonably expected to generate) passive income (as defined above). Assets which generate partly passive and partly non-passive income are considered passive assets to the extent of the relative proportion of passive income (compared to non-passive income) generated in a particular taxable year by such assets. Please note the following: • A trade or service receivable is non-passive if it results from sales or services provided in the ordinary course of business. • Intangible assets that produce identifiable items of income, such as patents or licenses, are characterized in terms of the type of income produced. • Goodwill and going concern value must be identified to a specific income producing activity and are characterized in accordance with the nature of that activity. • Cash and other assets easily convertible into cash are passive assets, even when used as working capital. • Stock and securities (including tax-exempt securities) are passive assets, unless held by a dealer as inventory.
Passive Assets. For purposes of this test, “passive assets” are those assets which generate (or are reasonably expected to generate) passive income (as defined above). Assets which generate partly passive and partly non-passive income are considered passive assets to the extent of the relative proportion of passive income (compared to non-passive income) generated in a particular taxable year by such assets. Please note the following: • A trade or service receivable is non-passive if it results from sales or services provided in the ordinary course of business. • Intangible assets that produce identifiable items of income, such as patents or licenses, are characterized in terms of the type of income produced. • Goodwill and going concern value must be identified to a specific income producing activity and are characterized in accordance with the nature of that activity. • Cash and other assets easily convertible into cash are passive assets, even when used as working capital. • Stock and securities (including tax-exempt securities) are passive assets, unless held by a dealer as inventory. Average value: For purposes of this test, “average fair market value” equals the average quarterly fair market value of the assets for the relevant taxable year. Look-through rule: if the Company owns, directly or indirectly, 25% of the stock by value of another corporation, the Company must take into account its proportionate share of the passive assets of such other corporation.
Passive Assets. For purposes of this question, note that “passive assets” are those assets that generate (or are reasonably expected to generate) passive income (as defined in paragraph 2 above). Assets that generate partly passive and partly non-passive income are considered passive assets to the extent of the relative proportion of passive income (compared to non-passive income) generated in a particular taxable year by such assets. Please note the following:
Examples of Passive Assets in a sentence
Appendix B lists all of the leases pursuant to which a member of the Barbados Group is a lessee that are Passive Assets and does not include any leases that are not Passive Assets.
More Definitions of Passive Assets
Passive Assets has the meaning ascribed to it in Section (3) of Exhibit D.
Passive Assets has the meaning set forth in Section 6.10(b)(x).
Passive Assets. For purposes of this test, “passive assets” are those assets which generate (or are reasonably expected to generate) passive income (as defined above). Assets which generate partly passive and partly non-passive income are considered passive assets to the extent of the relative proportion of passive income (compared to non-passive income) generated in a particular taxable year by such assets. Please note the following: • A trade or service receivable is non-passive if it results from sales or services provided in the ordinary course of business. • Intangible assets that produce identifiable items of income, such as patents or licenses, are characterized in terms of the type of income produced.