State Codes and Statutes

Statutes > California > Rtc > 17951-17955

REVENUE AND TAXATION CODE
SECTION 17951-17955



17951.  (a) For purposes of computing "taxable income of a
nonresident or part-year resident" under paragraph (1) of subdivision
(i) of Section 17041, in the case of nonresident taxpayers the gross
income includes only the gross income from sources within this
state.
   (b) Notwithstanding subdivision (a), the gross income of a
nonresident taxpayer does not include income not subject to the
Personal Income Tax Law (Part 10 (commencing with Section 17001) of
Division 2) by operation of the following federal laws:
   (1) Section 11108 of Title 46, United States Code, relating to
compensation for the performance of duties of certain merchant
seamen.
   (2) Section 11502 of Title 49, United States Code, relating to
compensation of an employee of a rail carrier.
   (3) Section 14503 of Title 49, United States Code, relating to
compensation of an employee of a motor carrier.
   (4) Section 40116 of Title 49, United States Code, relating to the
pay of an employee of an air carrier.
   (5) Section 571 of Title 50, Appendix, United States Code,
relating to military compensation of service members.



17952.  For purposes of computing "taxable income of a nonresident
or part-year resident" under paragraph (1) of subdivision (i) of
Section 17041, income of nonresidents from stocks, bonds, notes, or
other intangible personal property is not income from sources within
this state unless the property has acquired a business situs in this
state, except that if a nonresident buys or sells such property in
this state or places orders with brokers in this state to buy or sell
such property so regularly, systematically, and continuously as to
constitute doing business in this state, the profit or gain derived
from such activity is income from sources within this state
irrespective of the situs of the property.



17952.5.  (a) For purposes of computing "taxable income of a
nonresident or part-year resident" under paragraph (1) of subdivision
(i) of Section 17041, gross income of a nonresident, as defined in
Section 17015, from sources within this state shall not include
"qualified retirement income" received on or after January 1, 1996,
for any part of the taxable year during which the taxpayer was not a
resident of this state.
   (b) For purposes of this section, "qualified retirement income"
means income from any of the following:
   (1) A qualified trust under Section 401(a) of the Internal Revenue
Code that is exempt under Section 501(a) of the Internal Revenue
Code from taxation.
   (2) A simplified employee pension as defined in Section 408(k) of
the Internal Revenue Code.
   (3) An annuity plan described in Section 403(a) of the Internal
Revenue Code.
   (4) An annuity contract described in Section 403(b) of the
Internal Revenue Code.
   (5) An individual retirement plan described in Section 7701(a)(37)
of the Internal Revenue Code.
   (6) An eligible deferred compensation plan as defined in Section
457 of the Internal Revenue Code.
   (7) A governmental plan as defined in Section 414(d) of the
Internal Revenue Code.
   (8) A trust described in Section 501(c)(18) of the Internal
Revenue Code.
   (9) Any plan, program, or arrangement described in Section 3121(v)
(2)(C) of the Internal Revenue Code, or any plan, program, or
arrangement that is in writing, that provides for retirement payments
in recognition of prior service to be made to a retired partner, and
that is in effect immediately before retirement begins, if that
income is either of the following:
   (A) Part of a series of substantially equal periodic payments (not
less frequently than annually), which may include income described
in paragraphs (1) to (8), inclusive, made for either of the
following:
   (i) The life or the life expectancy of the recipient (or the joint
lives or joint life expectancies of the recipient and the designated
beneficiary of the recipient).
   (ii) A period of not less than 10 years.
   (B) A payment received after termination of employment, under a
plan, program, or arrangement to which that employment relates,
maintained solely for the purpose of providing retirement benefits
for employees in excess of the limitation imposed by Section 401(a)
(17), 401(k), 401(m), 402(g), 403(b), 408(k), or 415 of the Internal
Revenue Code, or any combination of those sections, or any other
limitation on contributions or benefits in the Internal Revenue Code
on plans to which any of those sections apply.
   (C) The fact that payments may be adjusted, from time to time,
pursuant to this plan, program, or arrangement to limit total
disbursements under a predetermined formula, or to provide
cost-of-living or similar adjustments, will not cause the periodic
payments provided under that plan, program, or arrangement to fail
the "substantially-equal-periodic-payments" test.
   (10) Any retired or retainer pay of a member or former member of a
uniform service computed under Section 1401 and following of Title
10 of the United States Code.
   (c) For purposes of this section, the term "retired partner" is an
individual who is described as a partner in Section 7701(a)(2) of
the Internal Revenue Code and who is retired under that individual's
partnership agreement.
   (d) This section shall apply only to any taxable year, or portion
thereof, that the provisions of Section 114 of Title 4 of the United
States Code, relating to limitation on state income taxation of
certain pension income, are effective.
   (e) Except as otherwise provided, references to the Internal
Revenue Code are subject to paragraph (1) of subdivision (a) of
Section 17024.5.



17953.  For purposes of computing "taxable income of a nonresident
or part-year resident" under paragraph (1) of subdivision (i) of
Section 17041, income of estates and trusts distributed or
distributable to nonresident beneficiaries is income from sources
within this state only if distributed or distributable out of income
of the estate or trust derived from sources within this state. For
the purposes of this section, the nonresident beneficiary shall be
deemed to be the owner of intangible personal property from which the
income of the estate or trust is derived.



17954.  For purposes of computing "taxable income of a nonresident
or part-year resident" under paragraph (1) of subdivision (i) of
Section 17041, except as provided in Section 25141, gross income from
sources within and without this state shall be allocated and
apportioned under rules and regulations prescribed by the Franchise
Tax Board.



17955.  (a) For purposes of computing "taxable income of a
nonresident or part-year resident" under paragraph (1) of subdivision
(i) of Section 17041, notwithstanding Sections 17951, 17952, and
17953, gross income of a nonresident (as defined in Section 17015)
from sources within this state shall not include dividends, interest,
or gains and losses from qualifying investment securities if any of
the following apply:
   (1) In the case of an individual, with respect to the qualifying
investment securities, the taxpayer's only contact with this state is
through a broker, dealer, or investment adviser located in this
state.
   (2) In the case of a partner's distributive share of income from
qualifying investment securities, the partnership qualifies as an
investment partnership, whether or not the partnership has a usual
place of business located in this state.
   (3) In the case of a beneficiary of a qualifying estate or trust,
the taxpayer's only contact with this state is through an investment
account managed by a corporate fiduciary located in this state.
   (4) In the case of a unit holder in a regulated investment company
(as defined in Section 851 of the Internal Revenue Code), to the
extent of the dividends distributed by the regulated investment
company, whether or not the regulated investment company has a
principal place of business in this state.
   (b) This section shall not apply to income derived from investment
activity that is interrelated with any trade or business activity of
the nonresident or an entity in which the nonresident owns an
interest in this state, whose primary activities are separate and
distinct from the acts of acquiring, managing, or disposing of
qualified investment securities, or if those securities were acquired
with working capital of a trade or business activity conducted in
this state in which the nonresident owns an interest.
   (c) For purposes of this section:
   (1) "Investment partnership" means a partnership that meets both
of the following requirements:
   (A) No less than 90 percent of the partnership's cost of its total
assets consist of qualifying investment securities, deposits at
banks or other financial institutions, and office space and equipment
reasonably necessary to carry on its activities as an investment
partnership.
   (B) No less than 90 percent of its gross income consists of
interest, dividends, and gains from the sale or exchange of
qualifying investment securities.
   (2) "Qualifying estate or trust" means an estate or trust that
meets both of the following requirements:
   (A) No less than 90 percent of the estate's or trust's cost of its
total assets consist of qualifying investment securities, deposits
at banks or other financial institutions, and office space and
equipment reasonably necessary to carry on its investment activities.
   (B) No less than 90 percent of its gross income consists of
interest, dividends, and gains from the sale or exchange of
qualifying investment securities.
   (3) (A) "Qualifying investment securities" include all of the
following:
   (i) Common stock, including preferred or debt securities
convertible into common stock, and preferred stock.
   (ii) Bonds, debentures, and other debt securities.
   (iii) Foreign and domestic currency deposits or equivalents and
securities convertible into foreign securities.
   (iv) Mortgage- or asset-backed securities secured by federal,
state, or local governmental agencies.
   (v) Repurchase agreements and loan participations.
   (vi) Foreign currency exchange contracts and forward and futures
contracts on foreign currencies.
   (vii) Stock and bond index securities and futures contracts, and
other similar financial securities and futures contracts on those
securities.
   (viii) Options for the purchase or sale of any of the securities,
currencies, contracts, or financial instruments described in clauses
(i) to (vii), inclusive.
   (ix) Regulated futures contracts.
   (B) "Qualifying investment securities" does not include an
interest in a partnership unless that partnership is itself an
investment partnership.


State Codes and Statutes

Statutes > California > Rtc > 17951-17955

REVENUE AND TAXATION CODE
SECTION 17951-17955



17951.  (a) For purposes of computing "taxable income of a
nonresident or part-year resident" under paragraph (1) of subdivision
(i) of Section 17041, in the case of nonresident taxpayers the gross
income includes only the gross income from sources within this
state.
   (b) Notwithstanding subdivision (a), the gross income of a
nonresident taxpayer does not include income not subject to the
Personal Income Tax Law (Part 10 (commencing with Section 17001) of
Division 2) by operation of the following federal laws:
   (1) Section 11108 of Title 46, United States Code, relating to
compensation for the performance of duties of certain merchant
seamen.
   (2) Section 11502 of Title 49, United States Code, relating to
compensation of an employee of a rail carrier.
   (3) Section 14503 of Title 49, United States Code, relating to
compensation of an employee of a motor carrier.
   (4) Section 40116 of Title 49, United States Code, relating to the
pay of an employee of an air carrier.
   (5) Section 571 of Title 50, Appendix, United States Code,
relating to military compensation of service members.



17952.  For purposes of computing "taxable income of a nonresident
or part-year resident" under paragraph (1) of subdivision (i) of
Section 17041, income of nonresidents from stocks, bonds, notes, or
other intangible personal property is not income from sources within
this state unless the property has acquired a business situs in this
state, except that if a nonresident buys or sells such property in
this state or places orders with brokers in this state to buy or sell
such property so regularly, systematically, and continuously as to
constitute doing business in this state, the profit or gain derived
from such activity is income from sources within this state
irrespective of the situs of the property.



17952.5.  (a) For purposes of computing "taxable income of a
nonresident or part-year resident" under paragraph (1) of subdivision
(i) of Section 17041, gross income of a nonresident, as defined in
Section 17015, from sources within this state shall not include
"qualified retirement income" received on or after January 1, 1996,
for any part of the taxable year during which the taxpayer was not a
resident of this state.
   (b) For purposes of this section, "qualified retirement income"
means income from any of the following:
   (1) A qualified trust under Section 401(a) of the Internal Revenue
Code that is exempt under Section 501(a) of the Internal Revenue
Code from taxation.
   (2) A simplified employee pension as defined in Section 408(k) of
the Internal Revenue Code.
   (3) An annuity plan described in Section 403(a) of the Internal
Revenue Code.
   (4) An annuity contract described in Section 403(b) of the
Internal Revenue Code.
   (5) An individual retirement plan described in Section 7701(a)(37)
of the Internal Revenue Code.
   (6) An eligible deferred compensation plan as defined in Section
457 of the Internal Revenue Code.
   (7) A governmental plan as defined in Section 414(d) of the
Internal Revenue Code.
   (8) A trust described in Section 501(c)(18) of the Internal
Revenue Code.
   (9) Any plan, program, or arrangement described in Section 3121(v)
(2)(C) of the Internal Revenue Code, or any plan, program, or
arrangement that is in writing, that provides for retirement payments
in recognition of prior service to be made to a retired partner, and
that is in effect immediately before retirement begins, if that
income is either of the following:
   (A) Part of a series of substantially equal periodic payments (not
less frequently than annually), which may include income described
in paragraphs (1) to (8), inclusive, made for either of the
following:
   (i) The life or the life expectancy of the recipient (or the joint
lives or joint life expectancies of the recipient and the designated
beneficiary of the recipient).
   (ii) A period of not less than 10 years.
   (B) A payment received after termination of employment, under a
plan, program, or arrangement to which that employment relates,
maintained solely for the purpose of providing retirement benefits
for employees in excess of the limitation imposed by Section 401(a)
(17), 401(k), 401(m), 402(g), 403(b), 408(k), or 415 of the Internal
Revenue Code, or any combination of those sections, or any other
limitation on contributions or benefits in the Internal Revenue Code
on plans to which any of those sections apply.
   (C) The fact that payments may be adjusted, from time to time,
pursuant to this plan, program, or arrangement to limit total
disbursements under a predetermined formula, or to provide
cost-of-living or similar adjustments, will not cause the periodic
payments provided under that plan, program, or arrangement to fail
the "substantially-equal-periodic-payments" test.
   (10) Any retired or retainer pay of a member or former member of a
uniform service computed under Section 1401 and following of Title
10 of the United States Code.
   (c) For purposes of this section, the term "retired partner" is an
individual who is described as a partner in Section 7701(a)(2) of
the Internal Revenue Code and who is retired under that individual's
partnership agreement.
   (d) This section shall apply only to any taxable year, or portion
thereof, that the provisions of Section 114 of Title 4 of the United
States Code, relating to limitation on state income taxation of
certain pension income, are effective.
   (e) Except as otherwise provided, references to the Internal
Revenue Code are subject to paragraph (1) of subdivision (a) of
Section 17024.5.



17953.  For purposes of computing "taxable income of a nonresident
or part-year resident" under paragraph (1) of subdivision (i) of
Section 17041, income of estates and trusts distributed or
distributable to nonresident beneficiaries is income from sources
within this state only if distributed or distributable out of income
of the estate or trust derived from sources within this state. For
the purposes of this section, the nonresident beneficiary shall be
deemed to be the owner of intangible personal property from which the
income of the estate or trust is derived.



17954.  For purposes of computing "taxable income of a nonresident
or part-year resident" under paragraph (1) of subdivision (i) of
Section 17041, except as provided in Section 25141, gross income from
sources within and without this state shall be allocated and
apportioned under rules and regulations prescribed by the Franchise
Tax Board.



17955.  (a) For purposes of computing "taxable income of a
nonresident or part-year resident" under paragraph (1) of subdivision
(i) of Section 17041, notwithstanding Sections 17951, 17952, and
17953, gross income of a nonresident (as defined in Section 17015)
from sources within this state shall not include dividends, interest,
or gains and losses from qualifying investment securities if any of
the following apply:
   (1) In the case of an individual, with respect to the qualifying
investment securities, the taxpayer's only contact with this state is
through a broker, dealer, or investment adviser located in this
state.
   (2) In the case of a partner's distributive share of income from
qualifying investment securities, the partnership qualifies as an
investment partnership, whether or not the partnership has a usual
place of business located in this state.
   (3) In the case of a beneficiary of a qualifying estate or trust,
the taxpayer's only contact with this state is through an investment
account managed by a corporate fiduciary located in this state.
   (4) In the case of a unit holder in a regulated investment company
(as defined in Section 851 of the Internal Revenue Code), to the
extent of the dividends distributed by the regulated investment
company, whether or not the regulated investment company has a
principal place of business in this state.
   (b) This section shall not apply to income derived from investment
activity that is interrelated with any trade or business activity of
the nonresident or an entity in which the nonresident owns an
interest in this state, whose primary activities are separate and
distinct from the acts of acquiring, managing, or disposing of
qualified investment securities, or if those securities were acquired
with working capital of a trade or business activity conducted in
this state in which the nonresident owns an interest.
   (c) For purposes of this section:
   (1) "Investment partnership" means a partnership that meets both
of the following requirements:
   (A) No less than 90 percent of the partnership's cost of its total
assets consist of qualifying investment securities, deposits at
banks or other financial institutions, and office space and equipment
reasonably necessary to carry on its activities as an investment
partnership.
   (B) No less than 90 percent of its gross income consists of
interest, dividends, and gains from the sale or exchange of
qualifying investment securities.
   (2) "Qualifying estate or trust" means an estate or trust that
meets both of the following requirements:
   (A) No less than 90 percent of the estate's or trust's cost of its
total assets consist of qualifying investment securities, deposits
at banks or other financial institutions, and office space and
equipment reasonably necessary to carry on its investment activities.
   (B) No less than 90 percent of its gross income consists of
interest, dividends, and gains from the sale or exchange of
qualifying investment securities.
   (3) (A) "Qualifying investment securities" include all of the
following:
   (i) Common stock, including preferred or debt securities
convertible into common stock, and preferred stock.
   (ii) Bonds, debentures, and other debt securities.
   (iii) Foreign and domestic currency deposits or equivalents and
securities convertible into foreign securities.
   (iv) Mortgage- or asset-backed securities secured by federal,
state, or local governmental agencies.
   (v) Repurchase agreements and loan participations.
   (vi) Foreign currency exchange contracts and forward and futures
contracts on foreign currencies.
   (vii) Stock and bond index securities and futures contracts, and
other similar financial securities and futures contracts on those
securities.
   (viii) Options for the purchase or sale of any of the securities,
currencies, contracts, or financial instruments described in clauses
(i) to (vii), inclusive.
   (ix) Regulated futures contracts.
   (B) "Qualifying investment securities" does not include an
interest in a partnership unless that partnership is itself an
investment partnership.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Rtc > 17951-17955

REVENUE AND TAXATION CODE
SECTION 17951-17955



17951.  (a) For purposes of computing "taxable income of a
nonresident or part-year resident" under paragraph (1) of subdivision
(i) of Section 17041, in the case of nonresident taxpayers the gross
income includes only the gross income from sources within this
state.
   (b) Notwithstanding subdivision (a), the gross income of a
nonresident taxpayer does not include income not subject to the
Personal Income Tax Law (Part 10 (commencing with Section 17001) of
Division 2) by operation of the following federal laws:
   (1) Section 11108 of Title 46, United States Code, relating to
compensation for the performance of duties of certain merchant
seamen.
   (2) Section 11502 of Title 49, United States Code, relating to
compensation of an employee of a rail carrier.
   (3) Section 14503 of Title 49, United States Code, relating to
compensation of an employee of a motor carrier.
   (4) Section 40116 of Title 49, United States Code, relating to the
pay of an employee of an air carrier.
   (5) Section 571 of Title 50, Appendix, United States Code,
relating to military compensation of service members.



17952.  For purposes of computing "taxable income of a nonresident
or part-year resident" under paragraph (1) of subdivision (i) of
Section 17041, income of nonresidents from stocks, bonds, notes, or
other intangible personal property is not income from sources within
this state unless the property has acquired a business situs in this
state, except that if a nonresident buys or sells such property in
this state or places orders with brokers in this state to buy or sell
such property so regularly, systematically, and continuously as to
constitute doing business in this state, the profit or gain derived
from such activity is income from sources within this state
irrespective of the situs of the property.



17952.5.  (a) For purposes of computing "taxable income of a
nonresident or part-year resident" under paragraph (1) of subdivision
(i) of Section 17041, gross income of a nonresident, as defined in
Section 17015, from sources within this state shall not include
"qualified retirement income" received on or after January 1, 1996,
for any part of the taxable year during which the taxpayer was not a
resident of this state.
   (b) For purposes of this section, "qualified retirement income"
means income from any of the following:
   (1) A qualified trust under Section 401(a) of the Internal Revenue
Code that is exempt under Section 501(a) of the Internal Revenue
Code from taxation.
   (2) A simplified employee pension as defined in Section 408(k) of
the Internal Revenue Code.
   (3) An annuity plan described in Section 403(a) of the Internal
Revenue Code.
   (4) An annuity contract described in Section 403(b) of the
Internal Revenue Code.
   (5) An individual retirement plan described in Section 7701(a)(37)
of the Internal Revenue Code.
   (6) An eligible deferred compensation plan as defined in Section
457 of the Internal Revenue Code.
   (7) A governmental plan as defined in Section 414(d) of the
Internal Revenue Code.
   (8) A trust described in Section 501(c)(18) of the Internal
Revenue Code.
   (9) Any plan, program, or arrangement described in Section 3121(v)
(2)(C) of the Internal Revenue Code, or any plan, program, or
arrangement that is in writing, that provides for retirement payments
in recognition of prior service to be made to a retired partner, and
that is in effect immediately before retirement begins, if that
income is either of the following:
   (A) Part of a series of substantially equal periodic payments (not
less frequently than annually), which may include income described
in paragraphs (1) to (8), inclusive, made for either of the
following:
   (i) The life or the life expectancy of the recipient (or the joint
lives or joint life expectancies of the recipient and the designated
beneficiary of the recipient).
   (ii) A period of not less than 10 years.
   (B) A payment received after termination of employment, under a
plan, program, or arrangement to which that employment relates,
maintained solely for the purpose of providing retirement benefits
for employees in excess of the limitation imposed by Section 401(a)
(17), 401(k), 401(m), 402(g), 403(b), 408(k), or 415 of the Internal
Revenue Code, or any combination of those sections, or any other
limitation on contributions or benefits in the Internal Revenue Code
on plans to which any of those sections apply.
   (C) The fact that payments may be adjusted, from time to time,
pursuant to this plan, program, or arrangement to limit total
disbursements under a predetermined formula, or to provide
cost-of-living or similar adjustments, will not cause the periodic
payments provided under that plan, program, or arrangement to fail
the "substantially-equal-periodic-payments" test.
   (10) Any retired or retainer pay of a member or former member of a
uniform service computed under Section 1401 and following of Title
10 of the United States Code.
   (c) For purposes of this section, the term "retired partner" is an
individual who is described as a partner in Section 7701(a)(2) of
the Internal Revenue Code and who is retired under that individual's
partnership agreement.
   (d) This section shall apply only to any taxable year, or portion
thereof, that the provisions of Section 114 of Title 4 of the United
States Code, relating to limitation on state income taxation of
certain pension income, are effective.
   (e) Except as otherwise provided, references to the Internal
Revenue Code are subject to paragraph (1) of subdivision (a) of
Section 17024.5.



17953.  For purposes of computing "taxable income of a nonresident
or part-year resident" under paragraph (1) of subdivision (i) of
Section 17041, income of estates and trusts distributed or
distributable to nonresident beneficiaries is income from sources
within this state only if distributed or distributable out of income
of the estate or trust derived from sources within this state. For
the purposes of this section, the nonresident beneficiary shall be
deemed to be the owner of intangible personal property from which the
income of the estate or trust is derived.



17954.  For purposes of computing "taxable income of a nonresident
or part-year resident" under paragraph (1) of subdivision (i) of
Section 17041, except as provided in Section 25141, gross income from
sources within and without this state shall be allocated and
apportioned under rules and regulations prescribed by the Franchise
Tax Board.



17955.  (a) For purposes of computing "taxable income of a
nonresident or part-year resident" under paragraph (1) of subdivision
(i) of Section 17041, notwithstanding Sections 17951, 17952, and
17953, gross income of a nonresident (as defined in Section 17015)
from sources within this state shall not include dividends, interest,
or gains and losses from qualifying investment securities if any of
the following apply:
   (1) In the case of an individual, with respect to the qualifying
investment securities, the taxpayer's only contact with this state is
through a broker, dealer, or investment adviser located in this
state.
   (2) In the case of a partner's distributive share of income from
qualifying investment securities, the partnership qualifies as an
investment partnership, whether or not the partnership has a usual
place of business located in this state.
   (3) In the case of a beneficiary of a qualifying estate or trust,
the taxpayer's only contact with this state is through an investment
account managed by a corporate fiduciary located in this state.
   (4) In the case of a unit holder in a regulated investment company
(as defined in Section 851 of the Internal Revenue Code), to the
extent of the dividends distributed by the regulated investment
company, whether or not the regulated investment company has a
principal place of business in this state.
   (b) This section shall not apply to income derived from investment
activity that is interrelated with any trade or business activity of
the nonresident or an entity in which the nonresident owns an
interest in this state, whose primary activities are separate and
distinct from the acts of acquiring, managing, or disposing of
qualified investment securities, or if those securities were acquired
with working capital of a trade or business activity conducted in
this state in which the nonresident owns an interest.
   (c) For purposes of this section:
   (1) "Investment partnership" means a partnership that meets both
of the following requirements:
   (A) No less than 90 percent of the partnership's cost of its total
assets consist of qualifying investment securities, deposits at
banks or other financial institutions, and office space and equipment
reasonably necessary to carry on its activities as an investment
partnership.
   (B) No less than 90 percent of its gross income consists of
interest, dividends, and gains from the sale or exchange of
qualifying investment securities.
   (2) "Qualifying estate or trust" means an estate or trust that
meets both of the following requirements:
   (A) No less than 90 percent of the estate's or trust's cost of its
total assets consist of qualifying investment securities, deposits
at banks or other financial institutions, and office space and
equipment reasonably necessary to carry on its investment activities.
   (B) No less than 90 percent of its gross income consists of
interest, dividends, and gains from the sale or exchange of
qualifying investment securities.
   (3) (A) "Qualifying investment securities" include all of the
following:
   (i) Common stock, including preferred or debt securities
convertible into common stock, and preferred stock.
   (ii) Bonds, debentures, and other debt securities.
   (iii) Foreign and domestic currency deposits or equivalents and
securities convertible into foreign securities.
   (iv) Mortgage- or asset-backed securities secured by federal,
state, or local governmental agencies.
   (v) Repurchase agreements and loan participations.
   (vi) Foreign currency exchange contracts and forward and futures
contracts on foreign currencies.
   (vii) Stock and bond index securities and futures contracts, and
other similar financial securities and futures contracts on those
securities.
   (viii) Options for the purchase or sale of any of the securities,
currencies, contracts, or financial instruments described in clauses
(i) to (vii), inclusive.
   (ix) Regulated futures contracts.
   (B) "Qualifying investment securities" does not include an
interest in a partnership unless that partnership is itself an
investment partnership.