Page:United States Statutes at Large Volume 49 Part 1.djvu/1760

 74TH CONGRESS. SESS. II. CH. 690. JU NE 22, 1936 . 17 15 regard to the provisions of subsection (a). As us ed in this secti on, secti on 119, section 1 43, section 144, and section 231, the phrase `"engaged in trade or business within the United States'' includes the pe rfo rman ce of p erso nal services within the United States at any time within the taxable year, but does not include the pe r- formance of personal services for a nonresident alien individual, fo reig n pa rtner ship, or for eign corp orat ion, not enga ged in tr ade or business within the United States, by a nonresident alien individ- ual temporarily present in the United States for a period or periods not exceeding a total of ninety days during the taxable year and whose compensation for such services do es not exceed in the aggre- gate $3,000 . Such phrase does not include the effecting of trans- actio ns in the United States in stocks, securities, or c ommodities through a resident broker, commission agent, or custodian . SEC. 212. GROSS INCOME. Gross income. (a) GENERAL RULE.-In the case of a nonresident alien individual From 1-nited states gross income includes only the gross income from sources within the sources. Un ited Sta tes. (b) SHIPS UNDER F ORE IGN FL AG. -The inco me of a no nresident Earnings fr om fo r- eign ship oper ation ex- alien individual which consists exclusively of earnings derived from e.pt from taxation. the operation of a ship or ships documented under the la ws ofa foreign country which grants an equivalent exemption to citizens of the United States and to corporations organized in the United States shall not be included in gross income and shall be exempt from taxation under this title. Term construed. An te, pp. 1693, 1700, 1702; Post, p. 1717. Transactions through broker, etc. SEC. 213. DEDUCTIONS. Deductions. (a) GENERAL RULE.-In the case of a nonresident alien individual If connected with income f rom Unite d the deductions shall be allowed only if and to the extent that they States sources. are connected with income from sources within the United States ; and the p roper apportionme nt and allocation of the deduction s with respect to sources of income within and without the United States shall be determined as provided in section 119, under rules and regu- Ante, p. 1693 . lations prescribed by the Commissioner wi th the approval of the Secretary. (b) LASSES .- L osses. (1) The d eduction, for los ses not connecte d with the trade or Not connected w ith business if incurred in transactions entered into for profit, allowed trade or business, by section 23 (e) (2) shall be allowed whether or not connected Ante, p. 1629. with income from sources within the United States, but only if the profit, if such transaction had resulted in a profit, would be taxable under this title. (2) The deduction for losses of property not connected with Casualty, etc ., not connected w ith bu si- the trade or business if arising from certain casualties or theft, ness . allowed by section 23 (e) (3), shall be allowed whether or not connected with income from sourc es within the Uni ted States, but only if the loss is of property within the United States. (C) CHARrrABLE ETC. CONTRIBUTIONS .-The so-called "charitable Charitable, etc., con- contribution" deduction allowe d by section 23 ( o) shall be allow ed tr'Antep 1660. whe ther or not con nec ted wit h in come from sources with in the United States, but only as to contributions or gifts made to domestic corporations, or to community chests, funds, or foundations, created in the United States, or to the vocational rehabilitation fund. SEC. 214. CREDITS AGAINST NET INCOME. Credits against net inco me. In the case of a nonresident alien individual the personal exemp- Perso nal exemption. tion allowed by section 25 (b) (1) of this title shall be only $1,000. Ante, p .1663.