### Question
Can you define what passive asset means?


### Answer
**Passive asset** is defined as the following in *26 U.S.C. § 956A*:

> any asset held by the controlled foreign corporation which produces passive income (as defined in section 1296(b)) or is held for the production of such income

#### Citation:
  - *26 U.S.C. § 956A*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter N-Tax Based on Income From Sources Within or Without the United States > PART III-INCOME FROM SOURCES WITHOUT THE UNITED STATES > Subpart F-Controlled Foreign Corporations**

