Qualified trade or business definition

Qualified trade or business means any trade or business that primarily involves research and development, technology transfer, bio-technology, information technology, or the application of new technology developed through research and development or acquired through technology transfer. "Qualified trade or business" does not include any of the following:
Qualified trade or business means any trade or business other than the businesses described in item #2. Stock and debt in any subsidiary corporation (defined in footnote 115) are disregarded and the parent is deemed to own its ratable share of the subsidiary’s assets, and to conduct its ratable share of the subsidiary’s activities (Section 1202(e)(5)(A)). Rights to computer software which produce active business computer software royalties (within the meaning of Section 543(d)(1)) are treated as an asset used in the active conduct of a trade or business (Section 1202(e)(8)).
Qualified trade or business means any trade or business other than those specifically excepted. § 199A(d)(1). Without exception, the trade or business of being an employee is not a qualified business. Similarly, although located in a different subsection of § 199A, § 707(c) payments made to a partner for services rendered to the trade or business and, “to the extent provided in regulations,” § 707(a) payments for services rendered to the trade or business are not included in qualified business income. § 199(c)(4). Certain “specified service” businesses are also not qualifying businesses, but for this category, a threshold tied to taxpayer income applies (described in greater detail below). A “specified service” business means any trade or business “involving the performance of services in the fields of health, law, . . . 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” and involving “the performance of services that consist of investing and investment management, trading, or dealing in securities. . ., partnership interest, or commodies.” (The first ellipsis in the first quote indicates the deliberate removal of engineering and architecture from the list.)

Examples of Qualified trade or business in a sentence

  • A manufacturing process is a process involving the manufacture of products, other than carbon oxide, that are intended to be sold at a profit, or are used for a commercial purpose.


More Definitions of Qualified trade or business

Qualified trade or business means any trade or business other than (a) a specified service business (but see exception below) or (b) the trade or business of performing services as an employee.
Qualified trade or business. (QTB) means any trade or business, other than if:
Qualified trade or business means any trade or business 52
Qualified trade or business means any trade or business income other than a specified trade or business, with an exception for engineering and architecture services, or the trade or business of performing services as an employee. Examples
Qualified trade or business means any trade or business other than any trade or business involving the performance of services in the fields of health, law, engineering, architec- ture, accounting, actuarial science, performing arts, consulting, athletics, financial ser- vices, 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.
Qualified trade or business means any trade or business other than the businesses described in item #2. Stock and debt in any subsidiary corporation (defined in footnote 115) are disregarded and the parent is deemed to own its ratable share of the subsidiary’s assets, and to conduct its ratable share of the subsidiary’s activities (Section 1202(e)(5)(A)). Rights to computer software which produce active business computer software royalties (within the meaning of Section 543(d)(1)) are treated as an asset used in the active conduct of a trade or business (Section 1202(e)(8)). 12 Section 1202(e)(6).
Qualified trade or business means any trade or business other than those specifically excepted. § 199A(d)(1). The trade or business of being an employee is not a qualified business, without exception. Similarly, although located in a different subsection of § 199A, “reasonable compensation paid to the taxpayer by any qualified trade or business of the taxpayer for services rendered with respect to the trade or business” is not qualified business income. The legislative history indicates that this provision is intended to apply to S corporation shareholders. The phrase “reasonable compensation” evokes the problem of S corporation shareholders deliberately limiting compensation in order to reduce Medicare taxes. See Joseph Radtke, S.C. v. United States, 712 F. Supp. 143 (E.D. Wis. 1989); Rev. Rul. 74–44.