effectively connected taxable income
Defined in 1 place of the United States Code.
For purposes of this section, the term "effectively connected taxable income" means the taxable income of the partnership which is effectively connected (or treated as effectively connected) with the conduct of a trade or business in the United States computed with the following adjustments:
Source
- 1994–201826 U.S.C. § 1446Internal Revenue Code · Withholding1 tax on foreign partners share of effectively connected income · for purposes of this section
For purposes of this section, the term “effectively connected taxable income” means the taxable income of the partnership which is effectively connected (or treated as effectively connected) with the conduct of a trade or business in the United States computed with the following adjustments:
(1) Paragraph (1) of section 703(a) shall not apply.
(2) The partnership shall be allowed a deduction for depletion with respect to oil and gas wells but the amount of such deduction shall be determined without regard to sections 613 and 613A.
(3) There shall not be taken into account any item of income, gain, loss, or deduction to the extent allocable under section 704 to any partner who is not a foreign partner.
Source
- 2013–present26 U.S.C. § 1446Internal Revenue Code · Withholding1 tax on foreign partners share of effectively connected income · for purposes of this section