§875 — Partnerships; beneficiaries of estates and trusts
11 cases·2 followed·2 overruled·7 cited—18% support
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
- Treas. Reg. §Treas. Reg. §1.875-1 Partnerships
- Treas. Reg. §Treas. Reg. §1.875-2 Beneficiaries of estates or trusts
- Treas. Reg. §Treas. Reg. §1.875-2(a) §1.875-2(a)
- Treas. Reg. §Treas. Reg. §1.875-2(b) Exception for certain taxable years.
- Treas. Reg. §Treas. Reg. §1.875-2(c) §1.875-2(c)
11 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".