Internal Revenue Code:Sec. 873. Deductions

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle A - Income Taxes
       CHAPTER 1 - NORMAL TAXES AND SURTAXES
        Subchapter N - Tax Based on Income From Sources Within or Without
              the United States
          PART II - NONRESIDENT ALIENS AND FOREIGN CORPORATIONS
           Subpart A - Nonresident Alien Individuals
         

Statute

    Sec. 873. Deductions
 
    (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 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.
    (c) Cross reference
          For rule that certain foreign taxes are not to be taken into
        account in determining deduction or credit, see section
        906(b)(1).
 

Sources

    (Aug. 16, 1954, ch. 736, 68A Stat. 280; Pub. L. 89-809, title I,
    Sec. 103(c)(1), Nov. 13, 1966, 80 Stat. 1550; Pub. L. 92-580, Sec.
    1(b), Oct. 27, 1972, 86 Stat. 1276; Pub. L. 94-455, title XIX, Sec.
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95-30, title
    I, Sec. 101(d)(11), May 23, 1977, 91 Stat. 134; Pub. L. 98-369,
    div.  A, title VII, Sec. 711(c)(2)(A)(iv), July 18, 1984, 98 Stat.
    945; Pub. L. 105-277, div.  J, title IV, Sec. 4004(b)(3), Oct. 21,
    1998, 112 Stat. 2681-911.)
 

Miscellaneous

                                 AMENDMENTS
      1998 - 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.''
      1984 - 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,''.
      1977 - 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.
      1976 - Subsec. (a). Pub. L. 94-455 struck out ''or his delegate''
    after ''Secretary''.
      1972 - 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.
      1966 - 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.
                      EFFECTIVE DATE OF 1998 AMENDMENT
      Amendment by Pub. L. 105-277 applicable to taxable years
    beginning after Dec. 31, 1983, see section 4004(c)(1) of Pub. L.
    105-277, set out as a note under section 172 of this title.
                      EFFECTIVE DATE OF 1984 AMENDMENT
      Amendment by Pub. L. 98-369 applicable to taxable years beginning
    after Dec. 31, 1983, see section 711(c)(2)(A)(v) of Pub. L. 98-369,
    set out as a note under section 165 of this title.
                      EFFECTIVE DATE OF 1977 AMENDMENT
      Amendment by Pub. L. 95-30 applicable to taxable years beginning
    after Dec. 31, 1976, see section 106(a) of Pub. L. 95-30, set out
    as a note under section 1 of this title.
                      EFFECTIVE DATE OF 1972 AMENDMENT
      Amendment by Pub. L. 92-580 applicable to taxable years beginning
    after Dec. 31, 1971, see section 1(c) of Pub. L. 92-580, set out as
    a note under section 152 of this title.
                      EFFECTIVE DATE OF 1966 AMENDMENT
      Amendment by Pub. L. 89-809 applicable with respect to taxable
    years beginning after Dec. 31, 1966, see section 103(n)(1) of Pub.
    L. 89-809, set out as a note under section 871 of this title.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 153, 170, 877, 906 of
    this title.