### Question
How does the law define qualified property?


### Answer
Under *26 U.S.C. § 355*, **qualified property** is defined as:

> any stock or securities in the controlled corporation

#### Citation:
  - *26 U.S.C. § 355*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter C-Corporate Distributions and Adjustments > PART III-CORPORATE ORGANIZATIONS AND REORGANIZATIONS > Subpart B-Effects on Shareholders and Security Holders**

