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


### Answer
Under *26 U.S.C. § 501*, **qualified subsidiary** is defined as:

> any corporation if, at all times during the period such corporation was in existence, 100 percent of the stock of such corporation is held by the corporation or trust described in subparagraph (A)

#### Citation:
  - *26 U.S.C. § 501*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter F-Exempt Organizations > PART I-GENERAL RULE**

