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Are there any types of business operations that do not qualify as a Qualified Active Business?

April 26, 2017active Business operations qualified qualify types

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Are there any types of business operations that do not qualify as a Qualified Active Business?

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Certain businesses cannot qualify, including residential rental property; a business, whose predominant activity of which is the development or holding of intangibles for sale or license; a golf course, country club, massage parlor, hot tub facility, suntan facility, race track, or a facility used for gambling; or a store, whose principal business is selling alcoholic beverages for consumption off-premises. In addition, as distinguished from the Enterprise Zone Business definition, rental of improved commercial real estate located in a low-income community is a Qualified Active Business regardless of the characteristics of the commercial of the property. The purchase and holding of unimproved real estate is not a Qualified Active Business. A Qualified Active Business can include a nonprofit organization.