§937 — Residence and source rules involving possessions
9 cases·9 cited
Statute Text — 26 U.S.C. §937
For purposes of this subpart, section 865(g)(3), section 876, section 881(b), paragraphs (2) and (3) of section 901(b), section 957(c), section 3401(a)(8)(C), and section 7654(a), except as provided in regulations, the term “bona fide resident” means a person—
who is present for at least 183 days during the taxable year in Guam, American Samoa, the Northern Mariana Islands, Puerto Rico, or the Virgin Islands, as the case may be, and
who does not have a tax home (determined under the principles of section 911(d)(3) without regard to the second sentence thereof) outside such specified possession during the taxable year and does not have a closer connection (determined under the principles of section 7701(b)(3)(B)(ii)) to the United States or a foreign country than to such specified possession.
For purposes of paragraph (1), the determination as to whether a person is present for any day shall be made under the principles of section 7701(b).
Except as provided in regulations, for purposes of this title—
except as provided in paragraph (2), rules similar to the rules for determining whether income is income from sources within the United States or is effectively connected with the conduct of a trade or business within the United States shall apply for purposes of determining whether income is from sources within a possession specified in subsection (a)(1) or effectively connected with the conduct of a trade or business within any such possession, and
any income treated as income from sources within the United States or as effectively connected with the conduct of a trade or business within the United States shall not be treated as income from sources within any such possession or as effectively connected with the conduct of a trade or business within any such possession.
If, for any taxable year, an individual takes the position for United States income tax reporting purposes that the individual became, or ceases to be, a bona fide resident of a possession specified in subsection (a)(1), such individual shall file with the Secretary, at such time and in such manner as the Secretary may prescribe, notice of such position.
If, for any of an individual’s 3 taxable years ending before the individual’s first taxable year ending after the date of the enactment of this subsection, the individual took a position described in paragraph (1), the individual shall file with the Secretary, at such time and in such manner as the Secretary may prescribe, notice of such position.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §1.937-1 Bona fide residency in a possession
- Treas. Reg. §Treas. Reg. §1.937-1(a) Scope—(1) In general.
- Treas. Reg. §Treas. Reg. §1.937-1(b) Bona fide resident—(1) General rule.
- Treas. Reg. §Treas. Reg. §1.937-1(c) Presence test—(1) In general.
- Treas. Reg. §Treas. Reg. §1.937-1(d) Tax home test—(1) General rule.
- Treas. Reg. §Treas. Reg. §1.937-1(e) Closer connection test—(1) General rule.
- Treas. Reg. §Treas. Reg. §1.937-1(f) Year of move—(1) Move to a possession.
- Treas. Reg. §Treas. Reg. §1.937-1(g) Examples.
- Treas. Reg. §Treas. Reg. §1.937-1(h) Information reporting requirement.
- Treas. Reg. §Treas. Reg. §1.937-1(i) Effective/applicability date.
- Treas. Reg. §Treas. Reg. §1.937-1(v) Had no significant connection to the United States during the taxable year.
- Treas. Reg. §Treas. Reg. §1.937-2 Income from sources within a possession
- Treas. Reg. §Treas. Reg. §1.937-2(a) Scope.
- Treas. Reg. §Treas. Reg. §1.937-2(b) In general.
- Treas. Reg. §Treas. Reg. §1.937-2(c) U.
- Treas. Reg. §Treas. Reg. §1.937-2(d) Income from certain sales of inventory property.
- Treas. Reg. §Treas. Reg. §1.937-2(e) Service in the Armed Forces.
- Treas. Reg. §Treas. Reg. §1.937-2(f) Gains from certain dispositions of property—(1) Property of former U.
- Treas. Reg. §Treas. Reg. §1.937-2(g) Dividends—(1) Dividends from certain possessions corporations—(i) In general.
- Treas. Reg. §Treas. Reg. §1.937-2(h) Income inclusions.
- Treas. Reg. §Treas. Reg. §1.937-2(i) Interest—(1) Interest from certain possessions corporations—(i) In general.
- Treas. Reg. §Treas. Reg. §1.937-2(j) Indirect ownership.
- Treas. Reg. §Treas. Reg. §1.937-2(k) Examples.
- Treas. Reg. §Treas. Reg. §1.937-2(l) Effective/applicability dates.
- Treas. Reg. §Treas. Reg. §1.937-2(v) If an individual described in paragraph (f)(1)(iii) of this section owns, directly or indirectly, at least 10 percent (by value) of any entity to which property described in paragraph (f)(1)(ii) of this section is transferred in a transaction in which gain or loss is not required to be recognized (in whole or in part) under U.
9 Citing Cases
At the same time, it also added section 937 to Code, which specifically defines bona fide residency as presence in the VI for at least 183 days during the year without having a tax home outside the VI or a "closer connection * * * to the United States or a foreign country." Id.
At the same time, it also added section 937 to Code, which specifically defines bona fide residency as presence in the VI for at least 183 days during the year without having a tax home outside the VI or a "closer connection * * * to the United States or a foreign country." Id.
At the same time, it also added section 937 to Code, which specifically defines bona fide residency as presence in the VI for at least 183 days during the year without having a tax home outside the VI or a "closer connection * * * to the United States or a foreign country." Id.
At the same time, it also added section 937 to Code, which specifically defines bona fide residency as presence in the VI for at least 183 days during the year without having a tax home outside the VI or a "closer connection * * * to the United States or a foreign country." Id.
The concerns that prompted the IRS to issue Notice 2004-45, supra, and Congress to enact section 937 were particularly acute in regard to U.S.