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


### Answer
The term **qualified portion** is defined in *26 U.S.C. § 265* as the following:

> that portion of the proceeds which are used with respect to each qualified borrower under the issue

#### Citation:
  - *26 U.S.C. § 265*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART IX-ITEMS NOT DEDUCTIBLE**

