### Question
Can you define what qualified partnership means?


### Answer
**Qualified partnership** is defined as the following in *26 U.S.C. § 447*:

> a partnership which is engaged in a qualified farming trade or business and each of the partners of which is a corporation other than—


(i) an S corporation, or


(ii) a personal holding company (within the meaning of section 542(a))

#### Citation:
  - *26 U.S.C. § 447*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart A-Methods of Accounting in General**

