### Question
How does the law define qualified payment?


### Answer
Under *26 U.S.C. § 2701*, **qualified payment** is defined as:

> any dividend payable on a periodic basis under any cumulative preferred stock (or a comparable payment under any partnership interest) to the extent that such dividend (or comparable payment) is determined at a fixed rate

#### Citation:
  - *26 U.S.C. § 2701*
  - Heading: **Subtitle B-Estate and Gift Taxes > CHAPTER 14-SPECIAL VALUATION RULES**

