### Question
What is the definition of qualified trade or business?


### Answer
The definition of **qualified trade or business** is as follows in *26 U.S.C. § 1202*:

> any trade or business other than—


(A) any trade or business involving the performance of services in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, or any trade or business where the principal asset of such trade or business is the reputation or skill of 1 or more of its employees,


(B) any banking, insurance, financing, leasing, investing, or similar business,


(C) any farming business (including the business of raising or harvesting trees),


(D) any business involving the production or extraction of products of a character with respect to which a deduction is allowable under section 613 or 613A, and


(E) any business of operating a hotel, motel, restaurant, or similar business

#### Citation:
  - *26 U.S.C. § 1202*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART I-TREATMENT OF CAPITAL GAINS**

