### Question
How is the term overall foreign loss defined?


### Answer
The term **overall foreign loss** is defined in *26 U.S.C. § 904* as the following:

> the amount by which the gross income for the taxable year from sources without the United States (whether or not the taxpayer chooses the benefits of this subpart for such taxable year) for such year is exceeded by the sum of the deductions properly apportioned or allocated thereto, except that there shall not be taken into account—


(A) any net operating loss deduction allowable for such year under section 172(a), and


(B) any—


(i) foreign expropriation loss for such year, as defined in section 172(h) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990), or


(ii) loss for such year which arises from fire, storm, shipwreck, or other casualty, or from theft,


  

to the extent such loss is not compensated for by insurance or otherwise

#### Citation:
  - *26 U.S.C. § 904*
  - 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**

