### Question
How is the "passive asset" defined?


### Answer
The term **passive asset** is defined in *26 U.S.C. § 6166* as follows -

> any asset other than an asset used in carrying on a trade or business

#### Citation:
  - *26 U.S.C. § 6166*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 62-TIME AND PLACE FOR PAYING TAX > Subchapter B-Extensions of Time for Payment**

