Canadian Maple Leaf Licensing Info: Alberta Mortgage #MW-0511205,
FSCO (Ontario) #10315,
Saskatchewan Mortgage #315872, and all other provinces.
 
Division of

The Mortgage Group®


GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
^
50% - Moderately

Passive Activity


Synonyms:detached, hands off involvement, uninvolved
Filed Under: financial-banking, investments, taxation
Tags: banking, investment, taxes
 

Definition of passive activity

passive activity
1. An activity in which you do not materially participate. Real estate rentals and limited partnerships are examples of passive activities.

Related Terms and Acronyms:

  • active income   Active income refers to wages, tips, and profits from your business or employment that you partake in. It also includes portfolio income such as interest and dividends, but you cannot usually offset active income with passive losses.
  • dividend   Distribution of earnings to shareholders. In credit unions, it's the money paid to members for deposits, similar to the interest banks pay to their customers for deposits.
  • lease (lse)   A written agreement in which the property owner allows a tenant to use property in exchange for rent, and for a specified period. Or, a written agreement in which a car dealer allows a consumer to use a vehicle in exchange for payments for a specified period.
  • passive income   Income coming in on a regular basis, with little or no maintenance.
  • passive loss   Loss from a passive activity. Passive loss rules limit the amount of passive loss you can deduct to the total of your other income from passive activities.
  • recognized gain or loss   The amount of gain or loss reported for income tax purposes. You may be able to defer recognizing gain or loss on certain property exchanges, such as like-kind exchanges.
  • security   A tradable financial implement that represents ownership, the rights to ownership or debt.

Search the Glossary

Mortgage Rates
Getting a low mortgage rate can mean the difference between you buying your dream home and... just a house. Look no further, apply today and get a great rate on your mortgage.
Mortgage Rates
 
Brand New Mortgage Calculator
Ultra? Super? Fantastic? All three are good words to describe our brand new mortgage calculator. We've added tons and tons of new features-- far too many to list. Try it and see for yourself.
Ultra Super Fantastic Mortgage Calculator
 
Compare Mortgage Rates Here
Interested in viewing current mortgage rates? Compare rates from all the best lenders in Canada using our mortgage rate comparison chart and find the lowest one.
Mortgage Rate Comparison