### Question
Can you define what prohibited transaction means?


### Answer
**Prohibited transaction** is defined as the following in *26 U.S.C. § 857*:

> a sale or other disposition of property described in section 1221(a)(1) which is not foreclosure property

#### Citation:
  - *26 U.S.C. § 857*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter M-Regulated Investment Companies and Real Estate Investment Trusts > PART II-REAL ESTATE INVESTMENT TRUSTS**

