Page:United States Statutes at Large Volume 68A.djvu/318

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INTERNAL REVENUE CODE OF 1954

(3) derived from the purchase of personal property within a possession of the United States and its sale within the United States, shall be treated as derived partly from sources within and partly from sources without the United States. SEC. 864. DEFINITIONS.

For purposes of this part, the word "sale" includes "exchange"; the word "sold" includes "exchanged"; and the word "produced" includes "created", "fabricated", "manufactured", "extracted", "processed", "cured", or "aged". PART II—NONRESIDENT ALIENS AND FOREIGN CORPORATIONS Subpart A. Nonresident alien individuals. Subpart B. Foreign corporations. Subpart C. Miscellaneous provisions.

Subpart A—Nonresident Alien Individuals Sec. Sec. Sec. Sec. Sec. Sec. Sec.

871. Tax on nonresident alien individuals. 872. Gross income. 873. Deductions. 874. Allowance of deductions and credits. 875. Partnerships. 876. Alien residents of Puerto Rico. 877. Foreign educational, charitable, and exempt organizations.

certain other

SEC. 871. TAX ON NONRESIDENT ALIEN INDIVIDUALS. (a)

No

UNITED STATES B U S I N E S S AND GROSS INCOME OF N O T

M O R E THAN $15,400.— (1) IMPOSITION OF TAX.—Except as otherwise provided in sub-

section (b) there is hereby imposed for each taxable year, in lieuof the tax imposed by section 1, on the amount received, by every nonresident alien individual not engaged in trade or business within the United States, from sources within the United States, as interest (except interest on deposits with persons carrying on the banking business), dividends, rents, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, or other fixed or determinable annual or periodical gains, profits, and income (including amounts described in section 402(a)(2), section 631(b) and (c), and section 1235, which are considered to be gains from the sale or exchange of capital assets), a tax of 30 percent of such amount. (2) CAPITAL GAINS OP ALIENS TEMPORARILY PRESENT IN THE UNITED STATES.—In the case of a nonresident alien individual not

engaged in trade or business in the United States, there is hereby imposed for each taxable year, in addition to the tax imposed by paragraph (1)— (A) if he is present in the United States for a period or periods aggregating less than 90 days during such taxable year—a tax of 30 percent of the amount by which his gains, derived from sources within the United States, from sales or exchanges of capital assets effected during his presence in the United States § 863(b)(3)

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