26 U.S.C. § 872 : US Code - Section 872: Gross income

Search 26 U.S.C. § 872 : US Code - Section 872: Gross income

(a) General rule
In the case of a nonresident alien individual, except where the
context clearly indicates otherwise, gross income includes only -
(1) gross income which is derived from sources within the
United States and which is not effectively connected with the
conduct of a trade or business within the United States, and
(2) gross income which is effectively connected with the
conduct of a trade or business within the United States.
(b) Exclusions
The following items shall not be included in gross income of a
nonresident alien individual, and shall be exempt from taxation
under this subtitle:
(1) Ships operated by certain nonresidents
Gross income derived by an individual resident of a foreign
country from the international operation of a ship or ships if
such foreign country grants an equivalent exemption to individual
residents of the United States.
(2) Aircraft operated by certain nonresidents
Gross income derived by an individual resident of a foreign
country from the international operation of aircraft if such
foreign country grants an equivalent exemption to individual
residents of the United States.
(3) Compensation of participants in certain exchange or training
programs
Compensation paid by a foreign employer to a nonresident alien
individual for the period he is temporarily present in the United
States as a nonimmigrant under subparagraph (F), (J), or (Q) of
section 101(a)(15) of the Immigration and Nationality Act, as
amended. For purposes of this paragraph, the term "foreign
employer" means -
(A) a nonresident alien individual, foreign partnership, or
foreign corporation, or
(B) an office or place of business maintained in a foreign
country or in a possession of the United States by a domestic
corporation, a domestic partnership, or an individual who is a
citizen or resident of the United States.
(4) Certain bond income of residents of the Ryukyu Islands or the
Trust Territory of the Pacific Islands
Income derived by a nonresident alien individual from a series
E or series H United States savings bond, if such individual
acquired such bond while a resident of the Ryukyu Islands or the
Trust Territory of the Pacific Islands.
(5) Income derived from wagering transactions in certain
parimutuel pools
Gross income derived by a nonresident alien individual from a
legal wagering transaction initiated outside the United States in
a parimutuel pool with respect to a live horse race or dog race
in the United States.
(6) Certain rental income
Income to which paragraphs (1) and (2) apply shall include
income which is derived from the rental on a full or bareboat
basis of a ship or ships or aircraft, as the case may be.
(7) Application to different types of transportation
The Secretary may provide that this subsection be applied
separately with respect to income from different types of
transportation.
(8) Treatment of possessions
To the extent provided in regulations, a possession of the
United States shall be treated as a foreign country for purposes
of this subsection.