### Question
How does Tax Based on Income From Sources Within or Without the United States define trade or service receivable?


### Answer
Under *26 U.S.C. § 864*, **trade or service receivable** is defined as:

> any account receivable or evidence of indebtedness arising out of—


(A) the disposition by a related person of property described in section 1221(a)(1), or


(B) the performance of services by a related person

#### Citation:
  - *26 U.S.C. § 864*
  - 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 I-SOURCE RULES AND OTHER GENERAL RULES RELATING TO FOREIGN INCOME**

