### Question
How is the term qualified partnership defined?


### Answer
The term **qualified partnership** is defined in *26 U.S.C. § 447* as the following:

> a partnership which is engaged in a qualified farming trade or business and each of the partners of which is a corporation other than—


(i) an S corporation, or


(ii) a personal holding company (within the meaning of section 542(a))

#### Citation:
  - *26 U.S.C. § 447*
  - 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 A-Methods of Accounting in General**

