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Direct Participation Program (DPP) is an entity that allows all taxable events to be passed through to investors including limited partnerships and subchapter S corporations.
Direct Participation Programs or DPPs are often organized for oil and gas exploration and drilling and for real estate investments. The programs are often set up as limited partnerships with the limited partners investing the capital and the general partner managing the program. There are not taxable events at the DPP level. All tax deductions and income are distributed to the partners.