### Question
Can you define what disqualified holder means?


### Answer
**Disqualified holder** is defined as the following in *26 U.S.C. § 514*:

> any shareholder (or beneficiary) which is not described in clause (i) or (ii) of subparagraph (C)

#### Citation:
  - *26 U.S.C. § 514*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter F-Exempt Organizations > PART III-TAXATION OF BUSINESS INCOME OF CERTAIN EXEMPT ORGANIZATIONS**

