26 U.S.C. § 862 : US Code - Section 862: Income from sources without the United States

Search 26 U.S.C. § 862 : US Code - Section 862: Income from sources without the United States

(a) Gross income from sources without United States
The following items of gross income shall be treated as income
from sources without the United States:
(1) interest other than that derived from sources within the
United States as provided in section 861(a)(1);
(2) dividends other than those derived from sources within the
United States as provided in section 861(a)(2);
(3) compensation for labor or personal services performed
without the United States;
(4) rentals or royalties from property located without the
United States or from any interest in such property, including
rentals or royalties for the use of or for the privilege of using
without the United States patents, copyrights, secret processes
and formulas, good will, trade-marks, trade brands, franchises,
and other like properties;
(5) gains, profits, and income from the sale or exchange of
real property located without the United States;
(6) gains, profits, and income derived from the purchase of
inventory property (within the meaning of section 865(i)(1))
within the United States and its sale or exchange without the
United States;
(7) underwriting income other than that derived from sources
within the United States as provided in section 861(a)(7); and
(8) gains, profits, and income from the disposition of a United
States real property interest (as defined in section 897(c)) when
the real property is located in the Virgin Islands.
(b) Taxable income from sources without United States
From the items of gross income specified in subsection (a) there
shall be deducted the expenses, losses, and other deductions
properly apportioned or allocated thereto, and a ratable part of
any expenses, losses, or other deductions which cannot definitely
be allocated to some item or class of gross income. The remainder,
if any, shall be treated in full as taxable income from sources
without the United States. In the case of an individual who does
not itemize deductions, an amount equal to the standard deduction
shall be considered a deduction which cannot definitely be
allocated to some item or class of gross income.