§875 — Partnerships; beneficiaries of estates and trusts
10 citing cases
Statute Text — 26 U.S.C. §875
For purposes of this subtitle—
a nonresident alien individual or foreign corporation shall be considered as being engaged in a trade or business within the United States if the partnership of which such individual or corporation is a member is so engaged, and
a nonresident alien individual or foreign corporation which is a beneficiary of an estate or trust which is engaged in any trade or business within the United States shall be treated as being engaged in such trade or business within the United States.
Treasury Regulations
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Treas. Reg. §1.875-1Partnerships
Whether a nonresident alien individual who is a member of a partnership is taxable in accordance with subsection (a), (b), or (c) of section 871 may depend on the status of the partnership. A nonresident alien individual who is a member of a partnership which is not engaged in trade or business within the United States is subject to the provisions of section 871 (a) or (b), as the case may be, depending on whether or not he receives during the taxable year an aggregate of more than $15,400 gross income described in section 871(a), if he is not otherwise engaged in trade or business within the United States. A nonresident alien individual who is a member of a partnership which at any time within the taxable year is engaged in trade or business within the United States is considered as being engaged in trade or business within the United States and is therefore taxable under section 871(c). For definition of what the term “partnership” includes, see section 7701(a)(2) and the regulations in part 301 of this chapter (Regulations on Procedure and Administration). The test of whether a partnership is engaged in trade or business within the United States is the same as in the case of a nonresident alien individual. See § 1.871-8.
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Treas. Reg. §1.875-2Beneficiaries of estates or trusts
(a) [Reserved]
(b) Exception for certain taxable years. Notwithstanding paragraph (a) of this section, for any taxable year beginning before January 1, 1975, the grantor of a trust, whether revocable or irrevocable, is not deemed to be engaged in trade or business within the United States merely because the trustee is engaged in trade or business within the United States.
(c) [Reserved]
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Treas. Reg. §1.875-2(a)§1.875-2(a)
[Reserved]
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Treas. Reg. §1.875-2(b)Exception for certain taxable years.
Exception for certain taxable years. Notwithstanding paragraph (a) of this section, for any taxable year beginning before January 1, 1975, the grantor of a trust, whether revocable or irrevocable, is not deemed to be engaged in trade or business within the United States merely because the trustee is engaged in trade or business within the United States.
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Treas. Reg. §1.875-2(c)§1.875-2(c)
[Reserved]
10 Citing Cases
y payment in excess of that which is properly due.” If a foreign corporation is a member of a partnership engaged in a U.S. trade or business, the foreign corporation is “considered as being engaged in a trade or business within the United States.” § 875(1). In that case, the foreign corporation is subject to tax on the taxable income effectively connected with its U.S. trade or business, § 882(a)(1), and the corporation is generally required to report that tax on Form 1120–F, U.S. Income Tax Re
When a partnership redeems a partner's interest in the partnership by making a payment to the partner, section 736(b)(1)¹° provides that such liquidating payments "be considered as a distribution by the partnership".