### Question
How does Income Taxes define foreign oil and gas extraction income?


### Answer
Under *26 U.S.C. § 907*, **foreign oil and gas extraction income** is defined as:

> the taxable income derived from sources without the United States and its possessions from—



(A) the extraction (by the taxpayer or any other person) of minerals from oil or gas wells, or



(B) the sale or exchange of assets used by the taxpayer in the trade or business described in subparagraph (A)

#### 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**

