### Question
How is the "testing period" defined?


### Answer
The term **testing period** is defined in *26 U.S.C. § 897* as follows -

> whichever of the following periods is the shortest:


(i) the period beginning on June 19, 1980, and ending on the date of the disposition or of the distribution, as the case may be,


(ii) the 5-year period ending on the date of the disposition or of the distribution, as the case may be, or


(iii) the period during which the qualified investment entity was in existence

#### Citation:
  - *26 U.S.C. § 897*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter N-Tax Based on Income From Sources Within or Without the United States > PART II-NONRESIDENT ALIENS AND FOREIGN CORPORATIONS > Subpart D-Miscellaneous Provisions**

