Page:United States Statutes at Large Volume 90 Part 2.djvu/145

 PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1613

" (6) O N L Y ONE ELECTION.—If any election under this subsection for any two individuals is terminated under paragraph (4) or (5) for any taxable year, such two individuals shall be ineligible to make an election under this subsection for any subsequent taxable year. " (h) JOINT E E T U R N, E T C., FOR YEAR I N W H I C H NONRESIDENT A L I E N BECOMES RESIDENT OF UNITED STATES.— " (1) IN GENERAL.—If—

" (A) any individual is a nonresident alien individual a t the beginning of any taxable year b u t is a resident of the United States a t the close of such taxable year, " (B) a t the close of such taxable year, such individual is married to a citizen or resident of the United States, and " (C) both individuals elect the benefits of this subsection at the time and in the manner prescribed by the Secretary by regulation, then the individual referred to in subparagraph (A) shall be treated as a resident of the United States for purposes of chapter 1 for all of such taxable year. " (2) O N L Y ONE ELECTION.—If any election under this subsection applies for any 2 individuals for any taxable year, such 2 individuals shall be ineligible to make an election under this subsection for any subsequent taxable year." (2) CLERICAL AMENDMENT.—Section 871(g)

( r e l a t i n g to cross

' *• 26 USC 1.

26 USC 871.

references) is amended by adding at the end thereof the following new paragraph: "(7) For election to treat married nonresident alien individual as resident of United States in certain cases, see subsections (g) and (h) of section 6013." (b) T A X TREATMENT OF CERTAIN COMMUNITY INCOME I N THE CASE OF A RESIDENT OR C I T I Z E N OF THE UNITED STATES W H O I S MARRIED TO A NONRESIDENT A L I E N INDIVIDUAL.—

' • "- '

'

(1) IN GENERAL.—Subpart A of part II of subchapter N of chapter 1 (relating to nonresident alien individuals) is amended by a d d i n g a t the end thereof the following new section: "SEC. 879. TAX TREATMENT OF CERTAIN COMMUNITY INCOME IN THE 26 USC 879. CASE OF A RESIDENT OR CITIZEN OF THE UNITED STATES WHO IS MARRIED TO A NONRESIDENT ALIEN INDIVIDUAI^ "(a)

GENERAL RULE. — I n the case of a citizen or resident of the

United States who is married to a nonresident alien individual and who has community income for the taxable year, such community income shall be treated as follows: " (1) E a r n e d income (within the meaning of section 9 1 1 (b)), other than trade or business income and a partner's distributive share of partnership income, shall be treated as the income of the spouse who rendered the personal services, " (2) Trade or business income, and a partner's distributive share of partnership income, shall be treated as provided in section 1402(a)(5), " (3) Cornmunity income not described in paragraph (1) or (2) which is derived from the separate property (as determined under the applicable community property law) of one spouse shall be treated as the income of such spouse, and " (4) A l l other such community income shall be treated as provided in the applicable community property law.

89-194 O—78—pt. 2

10

^ -

,1



�