### Question
How is the "5-percent shareholder" defined?


### Answer
The term **5-percent shareholder** is defined in *26 U.S.C. § 382* as follows -

> any person holding 5 percent or more of the stock of the corporation at any time during the testing period

#### Citation:
  - *26 U.S.C. § 382*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter C-Corporate Distributions and Adjustments > PART V-CARRYOVERS**

