### Question
How is the "third party investor" defined?


### Answer
The term **third party investor** is defined in *26 U.S.C. § 1061* as follows -

> a person who—


(A) holds an interest in the partnership which does not constitute property held in connection with an applicable trade or business

#### Citation:
  - *26 U.S.C. § 1061*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter O-Gain or Loss on Disposition of Property > PART IV-SPECIAL RULES**

