### Question
How is the term qualified small business defined?


### Answer
The term **qualified small business** is defined in *26 U.S.C. § 1202* as the following:

> any domestic corporation which is a C corporation if—


(A) the aggregate gross assets of such corporation (or any predecessor thereof) at all times on or after the date of the enactment of the Revenue Reconciliation Act of 1993 and before the issuance did not exceed $50,000,000,


(B) the aggregate gross assets of such corporation immediately after the issuance (determined by taking into account amounts received in the issuance) do not exceed $50,000,000, and


(C) such corporation agrees to submit such reports to the Secretary and to shareholders as the Secretary may require to carry out the purposes of this section

#### Citation:
  - *26 U.S.C. § 1202*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART I-TREATMENT OF CAPITAL GAINS**

