26 U.S.C. § 873
Deductions
# (a) General rule
In the case of a nonresident alien individual, the deductions shall be allowed only for purposes of section 871(b) and (except as provided by subsection (b)) only if and to the extent that they are connected with income which is effectively connected with the conduct of a trade or business within the United States; and the proper apportionment and allocation of the deductions for this purpose shall be determined as provided in regulations prescribed by the Secretary.
# (b) Exceptions
The following deductions shall be allowed whether or not they are connected with income which is effectively connected with the conduct of a trade or business within the United States: (1) Losses The deduction allowed by section 165 for casualty or theft losses described in paragraph (2) or (3) of section 165(c), but only if the loss is of property located within the United States. (2) Charitable contributions The deduction for charitable contributions and gifts allowed by section 170. (3) Personal exemption The deduction for personal exemptions allowed by section 151, except that only one exemption shall be allowed under section 151 unless the taxpayer is a resident of a contiguous country or is a national of the United States.
# (c) Cross reference
For rule that certain foreign taxes are not to be taken into account in determining deduction or credit, see section 906(b)(1).
Source: view the official text
Cited by 19
- 26 CFR § 1.1441-4 — Exemptions from withholding for certain effectively connected income and other amounts.
- 26 CFR § 1.1446-2 — Determining a partnership's effectively connected taxable income allocable to foreign partners under section 704.
- 26 CFR § 1.154 — Statutory provisions; cross references.
- 26 CFR § 1.170A-1 — Charitable, etc., contributions and gifts; allowance of deduction.
- 26 CFR § 1.199A-10 — Allocation of cost of goods sold (COGS) and other deductions to domestic production gross receipts (DPGR), and other rules.
- 26 CFR § 1.267A-5 — Definitions and special rules.
- 26 CFR § 1.404(a)-11 — Trusts created or organized outside the United States; application of section 404(a)(4).
- 26 CFR § 1.861-8 — Computation of taxable income from sources within the United States and from other sources and activities.
- 26 CFR § 1.865-3 — Source of gross income from sales of personal property (including inventory property) by a nonresident attributable to an office or other fixed place of business in the United States.
- 26 CFR § 1.871-10 — Election to treat real property income as effectively connected with U.S. business.
- 26 CFR § 1.871-13 — Taxation of individuals for taxable year of change of U.S. citizenship or residence.
- 26 CFR § 1.871-8 — Taxation of nonresident alien individuals engaged in U.S. business or treated as having effectively connected income.
Show 7 more
- 26 CFR § 1.873-1 — Deductions allowed nonresident alien individuals.
- 26 CFR § 1.874-1 — Allowance of deductions and credits to nonresident alien individuals.
- 26 CFR § 31.3402(f)(6)-1 — Withholding exemptions for nonresident alien individuals.
- 26 U.S.C. § 153 — Cross references
- 26 U.S.C. § 170 — Charitable, etc., contributions and gifts
- 26 U.S.C. § 877 — Expatriation to avoid tax
- 26 U.S.C. § 906 — Nonresident alien individuals and foreign corporations
Nearby sections (25 sections)
- 860D · REMIC defined
- 860E · Treatment of income in excess of daily accruals on residual…
- 860F · Other rules
- 860G · Other definitions and special rules
- 860H · Repealed. Pub. L. 108–357, title VIII, § 835(a), Oct. 22, 2004,…
- 861 · Income from sources within the United States
- 862 · Income from sources without the United States
- 863 · Special rules for determining source
- 864 · Definitions and special rules
- 865 · Source rules for personal property sales
- 871 · Tax on nonresident alien individuals
- 872 · Gross income
- 873 · Deductions
- 874 · Allowance of deductions and credits
- 875 · Partnerships; beneficiaries of estates and trusts
- 876 · Alien residents of Puerto Rico, Guam, American Samoa, or the…
- 877 · Expatriation to avoid tax
- 877A · Tax responsibilities of expatriation
- 878 · Foreign educational, charitable, and certain other exempt…
- 879 · Tax treatment of certain community income in the case of…
- 881 · Tax on income of foreign corporations not connected with United…
- 882 · Tax on income of foreign corporations connected with United…
- 883 · Exclusions from gross income
- 884 · Branch profits tax
- 885 · Cross references