qualified trade or business
Defined in 3 places of the United States Code.
For purposes of paragraph (2), the term “qualified trade or business” means any trade or business which—
(A) was actively conducted throughout the 5-year period ending on the date of the redemption, and
(B) was not acquired by the corporation within such period in a transaction in which gain or loss was recognized in whole or in part.
Source
- 1994–present26 U.S.C. § 302Internal Revenue Code · Distributions in redemption of stock · in this subchapter
For purposes of this subsection, the term “qualified trade or business” means any trade or business other than—
(A) any trade or business involving the performance of services in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, or any trade or business where the principal asset of such trade or business is the reputation or skill of 1 or more of its employees,
(B) any banking, insurance, financing, leasing, investing, or similar business,
(C) any farming business (including the business of raising or harvesting trees),
(D) any business involving the production or extraction of products of a character with respect to which a deduction is allowable under section 613 or 613A, and
(E) any business of operating a hotel, motel, restaurant, or similar business.
Source
- 1994–present26 U.S.C. § 1202Internal Revenue Code · Partial exclusion for gain from certain small business stock · for purposes of this section
The term "qualified trade or business" means any trade or business other than—
(A) a specified service trade or business, or
(B) the trade or business of performing services as an employee.
Source
- 2017–present26 U.S.C. § 199AInternal Revenue Code · Qualified business income · for purposes of this section