### Question
Can you define what qualified shareholder means?


### Answer
**Qualified shareholder** is defined as the following in *26 U.S.C. § 1247*:

> any shareholder who is a United States person (as defined in section 7701(a)(30)), other than a shareholder described in paragraph (2)

#### Citation:
  - *26 U.S.C. § 1247*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART IV-SPECIAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES**

