### Question
How is the term North American area defined?


### Answer
The term **North American area** is defined in *26 U.S.C. § 274* as the following:

> the United States, its possessions, and the Trust Territory of the Pacific Islands, and Canada and Mexico

#### Citation:
  - *26 U.S.C. § 274*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART IX-ITEMS NOT DEDUCTIBLE**

