§ 872.
(a)
General rule
In the case of a nonresident alien individual, except where the context clearly indicates otherwise, gross income includes only—
(1)
gross income which is derived from sources within the United States and which is not effectively connected with the conduct of a trade or business within the United States, and
(2)
gross income which is effectively connected with the conduct of a trade or business within the United States.
(b)
Exclusions
The following items shall not be included in gross income of a nonresident alien individual, and shall be exempt from taxation under this subtitle:
(1)
Ships operated by certain nonresidents
(2)
Aircraft operated by certain nonresidents
(3)
Compensation of participants in certain exchange or training programs
Compensation paid by a foreign employer to a nonresident alien individual for the period he is temporarily present in the United States as a nonimmigrant under subparagraph (F), (J), or (Q) of section 101(a)(15) of the Immigration and Nationality Act, as amended. For purposes of this paragraph, the term “foreign employer” means—
(A)
a nonresident alien individual, foreign partnership, or foreign corporation, or
(B)
an office or place of business maintained in a foreign country or in a possession of the United States by a domestic corporation, a domestic partnership, or an individual who is a citizen or resident of the United States.
(4)
Certain bond income of residents of the Ryukyu Islands or the Trust Territory of the Pacific Islands
(5)
Income derived from wagering transactions in certain parimutuel pools
(6)
Certain rental income
(7)
Application to different types of transportation
(8)
Treatment of possessions
([Aug. 16, 1954, ch. 736], [68A Stat. 280]; [Pub. L. 87–256, § 110(c)], Sept. 21, 1961, [75 Stat. 536]; [Pub. L. 89–809, title I, § 103(b)], Nov. 13, 1966, [80 Stat. 1550]; [Pub. L. 99–514, title XII, § 1212(c)(1)], (2), Oct. 22, 1986, [100 Stat. 2538]; [Pub. L. 100–647, title I, § 1012(e)(2)(B)], (5), (s)(2)(A), Nov. 10, 1988, [102 Stat. 3500], 3527; [Pub. L. 101–239, title VII, § 7811(i)(8)(C)], Dec. 19, 1989, [103 Stat. 2411]; [Pub. L. 103–296, title III, § 320(a)(2)], Aug. 15, 1994, [108 Stat. 1535]; [Pub. L. 108–357, title IV, § 419(a)], Oct. 22, 2004, [118 Stat. 1513].)