### Question
What is the definition of lending or finance business?


### Answer
The definition of **lending or finance business** is as follows in *26 U.S.C. § 542*:

> a business of—



(i) making loans,



(ii) purchasing or discounting accounts receivable, notes, or installment obligations,



(iii) rendering services or making facilities available in connection with activities described in clauses (i) and (ii) carried on by the corporation rendering services or making facilities available, or



(iv) rendering services or making facilities available to another corporation which is engaged in the lending or finance business (within the meaning of this paragraph), if such services or facilities are related to the lending or finance business (within such meaning) of such other corporation and such other corporation and the corporation rendering services or making facilities available are members of the same affiliated group (as defined in section 1504)

#### Citation:
  - *26 U.S.C. § 542*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter G-Corporations Used to Avoid Income Tax on Shareholders > PART II-PERSONAL HOLDING COMPANIES**

