### Question
How is the term qualified C corporation defined?


### Answer
The term **qualified C corporation** is defined in *26 U.S.C. § 465* as the following:

> any corporation described in subparagraph (B) of subsection (a)(1) which is not—


(i) a personal holding company (as defined in section 542(a)),


(ii) a foreign personal holding company (as defined in section 552(a)), or


(iii) a personal service corporation (as defined in section 269A(b) but determined by substituting “5 percent” for “10 percent” in section 269A(b)(2))

#### Citation:
  - *26 U.S.C. § 465*
  - 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 C-Taxable Year for Which Deductions Taken**

