### Question
How does NORMAL TAXES AND SURTAXES define qualified prize option?


### Answer
Under *26 U.S.C. § 451*, **qualified prize option** is defined as:

> an option which—


(i) entitles an individual to receive a single cash payment in lieu of receiving a qualified prize (or remaining portion thereof), and


(ii) is exercisable not later than 60 days after such individual becomes entitled to the qualified prize

#### Citation:
  - *26 U.S.C. § 451*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart B-Taxable Year for Which Items of Gross Income Included**

