### Question
How is the "limited entrepreneur" defined?


### Answer
The term **limited entrepreneur** is defined in *26 U.S.C. § 464* as follows -

> a person who—


(A) has an interest in an enterprise other than as a limited partner, and


(B) does not actively participate in the management of such enterprise

#### Citation:
  - *26 U.S.C. § 464*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart C-Taxable Year for Which Deductions Taken**

