### Question
Can you define what qualified incidental activities means?


### Answer
**Qualified incidental activities** is defined as the following in *26 U.S.C. § 1356*:

> shipping-related activities if—



(1) they are incidental to the corporation's core qualifying activities,



(2) they are not qualifying secondary activities, and



(3) without regard to this subchapter, the gross income derived by such corporation from such activities does not exceed 0.1 percent of the corporation's gross income from its core qualifying activities

#### Citation:
  - *26 U.S.C. § 1356*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter R-Election To Determine Corporate Tax on Certain International Shipping Activities Using Per Ton Rate**

