1548
6 8 A Stat. 320.
PUBLIC LAW 89-809-NOV. 13, 1966
[80 STAT.
into account only if, and to the extent that, they would be recognized and taken into account if such gains and losses were effectively connected with the conduct of a trade or business within the United States, except that such gains and losses shall be determined without regard to section 1202 (relating to deduction for capital gains) and such losses shall be determined without the benefits of the capital loss carryover provided in section 1212. Any gain or loss which is taken into account in determining the tax under paragraph (1) or subsection (b) shall not be taken into account in determining the tax under this paragraph. For purposes of the 183-day requirement of this paragraph, a nonresident alien individual not engaged in trade or business within the United States who has not established a taxable year for any prior period shall be treated as having a taxable year which is the calendar year. "(b) INCOME CONNECTED W I T H UNITED STATES BUSINESS—GRADTJATED R A T E OF T A X. — "(1) IMPOSITION or TAX.—A nonresident alien individual
Post, p. 1550.
engaged in trade or business within the United States during YiQ taxable year shall be taxable as provided in section 1 or 1201 (b) on his taxable income which is effectively connected with the conduct of a trade or business within the United States. "(2) DETERMINATION or TAXABLE INCOME.—In determining taxable income for purposes of paragraph (1), gross income includes only gross income which is effectively connected with the conduct of a trade or business within the United States. "(c)
75l^ll%\^^' 75 Stat. 536.
PARTICIPANTS I N CERTAIN EXCHANGE OR TRAINING PROGRAMS.—
For purposes of this section, a nonresident alien individual who (without regard to this subsection) is not engaged in trade or business within the United States and who is temporarily present in the United States as a nonimmigrant under subparagraph (F) or (J) of section 101(a) (15) of the Immigration and Nationality Act, as amended (8 U.S.C. 1101 (a) (15)(F) or (J)), shall be treated as a nonresideili alien individual engaged in trade or business within the United States, and any income described in section 1441(b)(1) or (2) which is received by such individual shall, to the extent derived from sources within the United States, be treated as effectively connected with the conduct of a trade or business within the United States. " (d) ELECTION To TREAT REAL PROPERTY INCOME AS INCOME CONNECTED W I T H UNITED STATES BUSINESS.—
68A Stat. 213.
"(1) IN GENERAL.—A nonresident alien individual who during the taxable year derives any income— " (A) from real property held for the production of income and located in the United States, or from any interest in such real property, including (i) gains from the sale or exchange of such real property or an interest therein, (ii) rents or royalties from mines, wells, or other natural deposits, and (iii) gains described in section 631(b) or (c), and " (B) which, but for this subsection, would not be treated as income which is effectively connected with the conduct of a trade or business within the United States, may elect for such taxable year to treat all such income as income which is effectively connected with the conduct of a trade or business within the United States. I n such case, such income shall be taxable as provided in subsection (b)(1) whether or not such individual is engaged in trade or business within the United States during the taxable year. An election under this paragraph for any taxable year shall remain in effect for all subsequent taxable years, except that it may be revoked with the
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