### Question
Can you define what foreign oil extraction loss means?


### Answer
**Foreign oil extraction loss** is defined as the following in *26 U.S.C. § 907*:

> the amount by which—


(I) the gross income for the taxable year from sources without the United States and its possessions (whether or not the taxpayer chooses the benefits of this subpart for such taxable year) taken into account in determining the foreign oil and gas extraction income for such year, is exceeded by


(II) the sum of the deductions properly apportioned or allocated thereto

#### Citation:
  - *26 U.S.C. § 907*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter N-Tax Based on Income From Sources Within or Without the United States > PART III-INCOME FROM SOURCES WITHOUT THE UNITED STATES > Subpart A-Foreign Tax Credit**

