### Question
What is the definition of foreign trading gross receipts?


### Answer
The definition of **foreign trading gross receipts** is as follows in *26 U.S.C. § 942*:

> the gross receipts of the taxpayer which are—


(A) from the sale, exchange, or other disposition of qualifying foreign trade property,


(B) from the lease or rental of qualifying foreign trade property for use by the lessee outside the United States,


(C) for services which are related and subsidiary to—


(i) any sale, exchange, or other disposition of qualifying foreign trade property by such taxpayer, or


(ii) any lease or rental of qualifying foreign trade property described in subparagraph (B) by such taxpayer,


  

(D) for engineering or architectural services for construction projects located (or proposed for location) outside the United States, or


(E) for the performance of managerial services for a person other than a related person in furtherance of the production of foreign trading gross receipts described in subparagraph (A), (B), or (C)

#### Citation:
  - *26 U.S.C. § 942*
  - 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 E-Qualifying Foreign Trade Income**

