### Question
How does the law define qualified community stock?


### Answer
Under *26 U.S.C. § 1400F*, **qualified community stock** is defined as:

> any stock in a domestic corporation if—



(i) such stock is acquired by the taxpayer after December 31, 2001, and before January 1, 2010, at its original issue (directly or through an underwriter) from the corporation solely in exchange for cash,



(ii) as of the time such stock was issued, such corporation was a renewal community business (or, in the case of a new corporation, such corporation was being organized for purposes of being a renewal community business), and



(iii) during substantially all of the taxpayer's holding period for such stock, such corporation qualified as a renewal community business

#### Citation:
  - *26 U.S.C. § 1400F*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter X-Renewal Communities > PART II-RENEWAL COMMUNITY CAPITAL GAIN; RENEWAL COMMUNITY BUSINESS**

