26 U.S.C. § 873

Section 873 · Deductions

Current version, with additions and removals from the July 18, 1984 version.

Current — October 21, 1998

As of July 18, 1984

(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 ~~for losses~~ allowed by section ~~165(c)(3),~~ but only if the loss is of property located within the United States.

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.

For rule that certain foreign taxes are not to be taken into account in determining deduction or credit, see section 906(b)(1).

Download

Copy

Embed on your site

Hover to preview · click to copy the code

Search Wikipedia →

Versions

Oct 21, 1998 – presentcurrentviewing
Annual edition
Subsec. (b)(1). Pub. L. 105–277 amended heading and text of par. (1) generally. Prior to amendment, text read as follows: “The deduction for losses allowed by section 165(c)(3), but only if the loss is of property located within the United States.”
▸ what changed
Source credit
Pub. L. 105–277, div. J, title IV, § 4004(b)(3), Oct. 21, 1998, 112 Stat. 2681–911.
Jul 18, 1984 – Oct 21, 1998
Annual edition
Subsec. (b)(1). Pub. L. 98–369 substituted “for losses” for “, for losses of property not connected with the trade or business if arising from certain casualties or theft,”.
changes vs current →
Source credit
Pub. L. 98–369, div. A, title VII, § 711(c)(2)(A)(iv), July 18, 1984, 98 Stat. 945
May 23, 1977 – Jul 18, 1984
Amended · full text not held
Subsec. (c). Pub. L. 95–30 struck out par. (1) which made a cross reference to section 142(b)(1) for disallowance of the standard deduction and struck out “(2)” at beginning of single remaining cross reference.
Source credit
Pub. L. 95–30, title I, § 101(d)(11), May 23, 1977, 91 Stat. 134
Oct 4, 1976 – May 23, 1977
Amended · full text not held
Subsec. (a). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.
Source credit
Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834
Oct 27, 1972 – Oct 4, 1976
Amended · full text not held
Subsec. (b)(3). Pub. L. 92–580 substituted exception that only one exemption be allowed under section 151 unless the taxpayer is a resident of a contiguous country or is a national of the United States, for exception that in the case of a non-resident alien individual who is not a resident of a contiguous country only one exception be allowed under section 151.
Source credit
Pub. L. 92–580, § 1(b), Oct. 27, 1972, 86 Stat. 1276
Nov 13, 1966 – Oct 27, 1972
Amended · full text not held
Pub. L. 89–809 amended section generally, substituting “connected with income which is effectively connected with the conduct of a trade or business within the United States” for “connected with income from sources within the United States” in subsec. (a), striking out provisions relating to the deduction of losses not connected with a trade or business but incurred in transactions entered into for profit in subsec. (b), making the casualty loss deduction available even if the property giving rise to the loss is not effectively connected with the conduct of a trade or business in the United States if the property is located in this country, making the charitable contribution deduction available even though not related to the trade or business, and adding subsec. (c)(2) making a cross reference to section 906(b)(1) for rule that certain foreign taxes are not to be taken into account in determining deduction or credit.
Source credit
Pub. L. 89–809, title I, § 103(c)(1), Nov. 13, 1966, 80 Stat. 1550
Aug 16, 1954 – Nov 13, 1966
Enacted · full text not held
Source credit
Aug. 16, 1954, ch. 736, 68A Stat. 280

See all changes since 1984 → current

Every enactment and amendment in this section's credit is listed. Full text is shown for versions back to 1984; earlier amendments are recorded by date and act, without pre-1994 full text.

Practice areas using this title

Bonds and Government Finance Law Estate Planning and Probate Law Guardianship and Conservatorship Law Non Profit Law Probate Litigation Law Special Needs Planning Law Tax Debt and IRS Disputes Law Tax Law Wills and Trusts Law