### Question
How does Income Taxes define applicable fraction?


### Answer
Under *26 U.S.C. § 135*, **applicable fraction** is defined as:

> the fraction the numerator of which is the amount described in subparagraph (A)(ii) and the denominator of which is the amount described in subparagraph (A)(i)

#### Citation:
  - *26 U.S.C. § 135*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART III-ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME**

