passive

: not involving, deriving from, or requiring effort or active participation imposed a passive duty not to interfere; specifically : of, relating to, or being business activity in which the investor does not have immediate control over the income-producing activity passive income passive losses : of, relating to, or being business activity in which the investor does not have immediate control over the income-producing activity passive income passive losses

Note: Under the Internal Revenue Code, there are two sources of passive income: rental activity and a business in which the taxpayer does not materially participate.