### Question
What is the definition of qualified trade or business?


### Answer
The definition of **qualified trade or business** is as follows in *26 U.S.C. § 302*:

> any trade or business which—


(A) was actively conducted throughout the 5-year period ending on the date of the redemption, and


(B) was not acquired by the corporation within such period in a transaction in which gain or loss was recognized in whole or in part

#### Citation:
  - *26 U.S.C. § 302*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter C-Corporate Distributions and Adjustments > PART I-DISTRIBUTIONS BY CORPORATIONS > Subpart A-Effects on Recipients**

