### Question
Can you define what nonqualified financial property means?


### Answer
**Nonqualified financial property** is defined as the following in *26 U.S.C. § 1397C*:

> debt, stock, partnership interests, options, futures contracts, forward contracts, warrants, notional principal contracts, annuities, and other similar property specified in regulations

#### Citation:
  - *26 U.S.C. § 1397C*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter U-Designation and Treatment of Empowerment Zones, Enterprise Communities, and Rural Development Investment Areas > PART III-ADDITIONAL INCENTIVES FOR EMPOWERMENT ZONES > Subpart D-General Provisions**

