### Question
Can you define what limited entrepreneur means?


### Answer
**Limited entrepreneur** is defined as the following in *26 U.S.C. § 461*:

> 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. § 461*
  - 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**

