### Question
What is the definition of applicable partnership interest?


### Answer
The definition of **applicable partnership interest** is as follows in *26 U.S.C. § 1061*:

> any interest in a partnership which, directly or indirectly, is transferred to (or is held by) the taxpayer in connection with the performance of substantial services by the taxpayer, or any other related person, in any applicable trade or business

#### Citation:
  - *26 U.S.C. § 1061*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter O-Gain or Loss on Disposition of Property > PART IV-SPECIAL RULES**

