### Question
Can you define what qualified 5-percent or less partner means?


### Answer
**Qualified 5-percent or less partner** is defined as the following in *26 U.S.C. § 267*:

> any partner who has (directly or indirectly) an interest of 5 percent or less in the aggregate capital and profits interests of the partnership but only if—



(i) such partner owned the low-income housing at all times during the 2-year period ending on the date such housing was transferred to the partnership, or



(ii) such partnership acquired the low-income housing pursuant to a purchase, assignment, or other transfer from the Department of Housing and Urban Development or any State or local housing authority

#### Citation:
  - *26 U.S.C. § 267*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART IX-ITEMS NOT DEDUCTIBLE**

