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26 U.S.C. § 873 — Deductions
Federal law — U.S. Code and appendices · legal_authorities
**(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: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 873
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Source file: Laws/federal/codes/united-states-code/title-26/section-873-deductions--9b700e9524.md
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Source location: Title 26, Chapter 1, § 873; chapter-001-normal-taxes-and-surtaxes.md
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**(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).
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** There shall be allowed as a deduction any loss sustained during the taxable year and not compensated for by insurance or otherwise.
**(b) Amount of deduction** For purposes of subsection (a), the basis for determining the amount of the deduction for any loss shall be the adjusted basis provided in section 1011 for determining the loss from the sale or other disposition of property.
**(c) Limitation on losses of individuals** In the case of an individual, the deduction under subsection (a) shall be limited to—
(1) losses incurred in a trade or business;
(2) losses incurred in any transaction entered into for profit, though not connected with a trade or business; and
(3) except as provided in subsection (h), losses of property not connected with a trade or business or a transaction entered into for profit, if such losses arise from fire, storm, shipwreck, or other casualty, or from theft.
**(d) Wagering losses**
(1) **In general** — For purposes of losses from wagering transactions, the amount allowed as a deduction for any taxable year—
(A) shall be equal to 90 percent of the amount of such losses during such taxable year, and
(B) shall be allowed only to the extent of the gains from such transactions during such taxable year.
(2) **Special rule** — For purposes of paragraph (1), the term “losses from wagering transactions” includes any deduction otherwise allowable under this chapter incurred in carrying on any wagering transaction.
**(e) Theft losses** For purposes of subsection (a), any loss arising from theft shall be treated as sustained during the taxable year in which the taxpayer discovers such loss.
**(f) Capital losses** Losses from sales or exchanges of capital assets shall be allowed only to the extent allowed in sections
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 165
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Deduction allowed** There shall be allowed as a deduction for the taxable year an amount equal to—
(1) in the case of a taxable year beginning before January 1, 2021, the aggregate of the net operating loss carryovers to such year, plus the net operating loss carrybacks to such year, and
(2) in the case of a taxable year beginning after December 31, 2020, the sum of—
(A) the aggregate amount of net operating losses arising in taxable years beginning before January 1, 2018, carried to such taxable year, plus
(B) the lesser of—
(i) the aggregate amount of net operating losses arising in taxable years beginning after December 31, 2017, carried to such taxable year, or
(ii) 80 percent of the excess (if any) of—
(I) taxable income computed without regard to the deductions under this section and sections 199A and 250, over
(II) the amount determined under subparagraph (A).
For purposes of this subtitle, the term “net operating loss deduction” means the deduction allowed by this subsection.
**(b) Net operating loss carrybacks and carryovers**
(1) **Years to which loss may be carried**
(A) *General rule* — A net operating loss for any taxable year—
(i) shall be a net operating loss carryback to the extent provided in subparagraphs (B), (C)(i), and (D), and
(ii) except as provided in subparagraph (C)(ii), shall be a net operating loss carryover—
(I) in the case of a net operating loss arising in a taxable year beginning before January 1, 2018, to each of the 20 taxable years following the taxable year of the loss, and
(II) in the case of a net operating loss arising in a taxable year beginning after December 31, 2017, to each taxable year following the taxable year of the loss.
(B) *Farming losses*
(i) *I
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 172
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Married individuals filing joint returns and surviving spouses** There is hereby imposed on the taxable income of—
(1) every married individual (as defined in section 7703) who makes a single return jointly with his spouse under section 6013, and
(2) every surviving spouse (as defined in section 2(a)),
a tax determined in accordance with the following table: If taxable income is:The tax is: Not over $36,90015% of taxable income. Over $36,900 but not over $89,150$5,535, plus 28% of the excess over $36,900. Over $89,150 but not over $140,000$20,165, plus 31% of the excess over $89,150. Over $140,000 but not over $250,000$35,928.50, plus 36% of the excess over $140,000. Over $250,000$75,528.50, plus 39.6% of the excess over $250,000.
**(b) Heads of households** There is hereby imposed on the taxable income of every head of a household (as defined in section 2(b)) a tax determined in accordance with the following table: If taxable income is:The tax is: Not over $29,60015% of taxable income. Over $29,600 but not over $76,400$4,440, plus 28% of the excess over $29,600. Over $76,400 but not over $127,500$17,544, plus 31% of the excess over $76,400. Over $127,500 but not over $250,000$33,385, plus 36% of the excess over $127,500. Over $250,000$77,485, plus 39.6% of the excess over $250,000.
**(c) Unmarried individuals (other than surviving spouses and heads of households)** There is hereby imposed on the taxable income of every individual (other than a surviving spouse as defined in section 2(a) or the head of a household as defined in section 2(b)) who is not a married individual (as defined in section 7703) a tax determined in accordance with the following table: If taxable income is:The tax is: Not over $22,10015% of taxable income. Over $22,100 but not over $53,50
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 1
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** For purposes of this subtitle, the term “dependent” means—
(1) a qualifying child, or
(2) a qualifying relative.
**(b) Exceptions** For purposes of this section—
(1) **Dependents ineligible** — If an individual is a dependent of a taxpayer for any taxable year of such taxpayer beginning in a calendar year, such individual shall be treated as having no dependents for any taxable year of such individual beginning in such calendar year.
(2) **Married dependents** — An individual shall not be treated as a dependent of a taxpayer under subsection (a) if such individual has made a joint return with the individual’s spouse under section 6013 for the taxable year beginning in the calendar year in which the taxable year of the taxpayer begins.
(3) **Citizens or nationals of other countries**
(A) *In general* — The term “dependent” does not include an individual who is not a citizen or national of the United States unless such individual is a resident of the United States or a country contiguous to the United States.
(B) *Exception for adopted child* — Subparagraph (A) shall not exclude any child of a taxpayer (within the meaning of subsection (f)(1)(B)) from the definition of “dependent” if—
(i) for the taxable year of the taxpayer, the child has the same principal place of abode as the taxpayer and is a member of the taxpayer’s household, and
(ii) the taxpayer is a citizen or national of the United States.
**(c) Qualifying child** For purposes of this section—
(1) **In general** — The term “qualifying child” means, with respect to any taxpayer for any taxable year, an individual—
(A) who bears a relationship to the taxpayer described in paragraph (2),
(B) who has the same principal place of abode as the taxpayer for more than one
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 152
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Income not connected with United States business—30 percent tax**
(1) **Income other than capital gains** — Except as provided in subsection (h), there is hereby imposed for each taxable year a tax of 30 percent of the amount received from sources within the United States by a nonresident alien individual as—
(A) interest (other than original issue discount as defined in section 1273), dividends, rents, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, and other fixed or determinable annual or periodical gains, profits, and income,
(B) gains described in subsection (b) or (c) of section 631,
(C) in the case of—
(i) a sale or exchange of an original issue discount obligation, the amount of the original issue discount accruing while such obligation was held by the nonresident alien individual (to the extent such discount was not theretofore taken into account under clause (ii)), and
(ii) a payment on an original issue discount obligation, an amount equal to the original issue discount accruing while such obligation was held by the nonresident alien individual (except that such original issue discount shall be taken into account under this clause only to the extent such discount was not theretofore taken into account under this clause and only to the extent that the tax thereon does not exceed the payment less the tax imposed by subparagraph (A) thereon), and
(D) gains from the sale or exchange after October 4, 1966, of patents, copyrights, secret processes and formulas, good will, trademarks, trade brands, franchises, and other like property, or of any interest in any such property, to the extent such gains are from payments which are contingent on the productivity, use, or disposition of the property or interest
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 871
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Federal law — U.S. Code and appendices · legal_authorities
Page 2067
TITLE 26—INTERNAL REVENUE CODE
§ 873
1989—Subsec. (b)(7). Pub. L. 101–239 added par. (7).
1988—Subsec. (a). Pub. L. 100–647, § 1012(s)(2)(A), in-
serted ‘‘, except where the context clearly indicates
otherwise’’ after ‘‘individual’’.
Subsec. (b)(1), (2). Pub. L. 100–647, § 1012(e)(2)(B), (5),
substituted ‘‘to individual residents of the United
States’’ for ‘‘to citizens of the United States and to cor-
porations organized in the United States’’ and ‘‘inter-
national operation’’ for ‘‘operation’’.
1986—Subsec. (b)(1). Pub. L. 99–514, § 1212(c)(1), added
par. (1) and struck out former par. (1), ships under for-
eign flag, which read as follows: ‘‘Earnings derived
from the operation of a ship or ships documented under
the laws of a foreign country which grants an equiva-
lent exemption to citizens of the United States and to
corporations organized in the United States.’’
Subsec. (b)(2). Pub. L. 99–514, § 1212(c)(1), added par. (2)
and struck out former par. (2), aircraft of foreign reg-
istry, which read as follows: ‘‘Earnings derived from
the operation of aircraft registered under the laws of a
foreign country which grants an equivalent exemption
to citizens of the United States and to corporations or-
ganized in the United States.’’
Subsec. (b)(5), (6). Pub. L. 99–514, § 1212(c)(2), added
pars. (5) and (6).
1966—Subsec. (a). Pub. L. 89–809, § 103(b)(1), limited
the inclusion of gross income which is derived from
sources within the United States to such income which
is not effectively connected with the conduct of a trade
or business within the United States and inserted pro-
vision including gross income without the limitation as
to source which is effectively connected with the con-
duct of a trade or business within the United States.
Su
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 873
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.