### Question
How is the "qualified joint venture" defined?


### Answer
The term **qualified joint venture** is defined in *26 U.S.C. § 761* as follows -

> any joint venture involving the conduct of a trade or business if—



(A) the only members of such joint venture are a husband and wife,



(B) both spouses materially participate (within the meaning of section 469(h) without regard to paragraph (5) thereof) in such trade or business, and



(C) both spouses elect the application of this subsection

#### Citation:
  - *26 U.S.C. § 761*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter K-Partners and Partnerships > PART III-DEFINITIONS**

