### Question
Can you define what passive real estate ownership means?


### Answer
**Passive real estate ownership** is defined as the following in *12 U.S.C. § 4742*:

> ownership of real estate for the purpose of deriving income from speculation, trade, or rental, except that such term shall not include—


(A) the ownership of that portion of real estate being used or intended to be used for the operation of the business of the owner of the real estate (other than the business of passive ownership of real estate)

#### Citation:
  - *12 U.S.C. § 4742*
  - Heading: **CHAPTER 47-COMMUNITY DEVELOPMENT BANKING > SUBCHAPTER II-SMALL BUSINESS CAPITAL ENHANCEMENT**

