1'ITIJ 26.-—-INT! (3) In tbeaseofan who dies dn& the mxable par, the cre&¤ allowed by ¤l$¤v¤ons (c), ('d),° and (e) Shall bede¤¤'@¤¤dbyb.is|tatnaattl=etlme_ofmsdmth, and ‘ln‘s¤&-c•aef¤Hero&¤~mll·be¤.ll;osvedto thesnrvivlmsponae, lfl¤Y,gocordlngbohlaoa·‘h¤ statm-atthecloseof the taxable `ymr. (Feb. 1% c. 27; U $8..44 But. E.) ‘ v suno¤eat@n@_o!thl•chapter.;_ . »
218} 317, @6 ¥¤• Bationcd in the text areset out
‘ h ts N4.- wl. or me mppzmmm uae. rnsmarrade Actor 19% herein refer-red_to‘u set out an c. 4 er‘¤*xm—1¤,cear¤ancn»a:ro’2a1om j __ _ _ x_ · _ , ` 958. Nonrcddas ahmrsress inoomeyfromsonroes and U¤i*$ `ésdnotim; allocation of items;. dehitins; for·9:redlta.—(a)‘ In the case of a nonresident alien individual or of la citizen entitled to the benel nts otsection 2®, the ronownsg items ot gross inmine shall be treated as income from sources the _United · States: ` (1)· Interest on bonds, notes, or other·interest·bearing_obllgations of midents, _ corporate or otherwise, not including (A) interwt on depodts- with persons mrrying on the banking busi, " new paid to persons not Bd in business within the United States and not having an omoe or placeof business therein, or (B) interm recelved from a resident allen individual, ‘a resident forelm corporation, or a domestic corporation, when -it?»is shown to the satisfaction of the commissioner that less than 20 `per owtum of the ness. income of suennesxoenci payor_or domestic corporation has been derlred from sources - within the United States, as d lned nnder the provisions of this. section, for three-y&r period ending awith —_the close of. the taxable year of such payor preceding ..the payment oi such interwt, or for part of snch period as may be applicable; (2) smut received as dividends (A) from a domestic corporation cme: than a corporation entitled to the benefits or section -%2, and other- than Xa corporation less than 20 per centnm‘ofwhose grow income is shownqto the satisfaction of the` @oner to have hem wdved from sources within-the Unltld Statm as under the provisions of this 'sectiomtor me three-year palod with the close of the taxable y7ear"·of sn@ corporation the declaration ot sam dividends, (or for meh part of ouch period as.the· cor-· 'poraww ln existence), ‘or_(B).tfrom a foreign corpora- ‘ tion imwlms tun-50 of grow income or such torei@° for the threwmr ‘_ emlng with the closeoof its "méble the fdaclaration of, such dlrl (or for each part=of smh period as the corporationhas hem in exlstmoe) was derived from sources within the United Stntd as -detn·1nined under the proyisions. of this section;-‘ V ( e " I _ "] (3) Compaaution for labor or perwnal seryioes performed mtmomoa sum; · » ~ —- Q (4) Bmtals or royaltlesgfrom property located in thellnlted ( Statwor from any interest ln such property, including rentals) or royaltlu nor the use of or for the prlvil@ of wng in the ( United Etatm,. patents, copyrights, · secru procasea and forman [ las, good will,-trademarks, trade brandifranchises, and other o likepmopertygaml ,_ _ (5) Ga1m,pro§ts, and income from the sale of real property located in thellnited States. , __, _ · . · (*b) From the i@ of Qmss income subdivision la) lossu, and other
or allomtedtherdo and a
A ratawe M any lam, or other deductions which one not ddnltely be allomtad to somltmi orclan of Rom. income. The rmatnder. if any, shall-be in fall. as ¤etlncomfrmson@withl¤tho’United_Stnte§·, _ _ l (o) The {tem of gromlncome shall b• treated Q5 income wlwont the United States.: ¤ , ° _ (1) Intmt derlvw from sources within the United Stain as movided in paragraph Q(1`)·0f S·¤bdi*`¥$*°¤ Ul) F Ra97ne.An...;_1 or;
muh REVENUE ·‘ §958
- (2) Dividends other than those derived from sources within
the United _-States ns provided in perapaph (2) of sub- ¢¤*i¤‘i¤¤€¤)-: · h p · I · ‘ (3) Compeneation, for labor or personal services performed Without the United States ;_ -· ‘ ’_ ` . (4) Rentals. or roynlties from property lobated withoot the __ United States or from any interest in such ~propei·ty,_ includ- `lng rentals or royelties for. the use of or for the prlvilweof UBIUS without the United States, patents, copyrights, secret ·processes~1and formulns,. good will, trademarks, trade brands, (ranchises, end other like properties; and . — ‘ _ (5) Gains, protlts, and income from the sale of real property . Iooated without the-United States. 1 · . _ V . (d).- From. the items of gross ineome ·specided`ln sttbdivisiou (`c) there shall be- deducted the expenses, losses, and other deductions properly apportioned ora huomtm thereto, am e _ratab1e_ part of any expenses, lows, or other deductions which ` can not; definitely be allocated to some item or claw of gross “ income. The remainder, if eny, shall be treated full ae net lncouielfrom sources withont the UnitedStates. : _ . (e) _ Items of gross income, expenses, losses end deductions, otherthsm those specided in subdivisions (a) and (c), shall. be allocated or apportioned to withirr or without the United .·§tates under rules and regulations prescribed by the commissioner with the epprovnl of the Secretary. ·` Where items of gross income are separatelynllocated to sources within the UnitedStates, there shell be déditded (tor the pn ‘ot oomputing the net income therefrom) the expenses, `l and other · deductions properly npportioned or. allocated thereto and nl retoble port oi other expenses, lowes or other deductions which can not deilnitely be alloontéd to some item or class of grms income. _The remainder, it any, 'shall be included in toll. as net income from sonreeewithin the United States. In the case of gross income derived from sources partly within nnd`pnrtly ' without the United States,Q thenet income xnoydrst he oom—· "puted by deducting the expenses,. lowes or other deductions ep: portioned or allocated thereto end an ratshle mrt ef" any _ expenm, losses or other dednctitins which can not d&nitely be allocated to some items or close of moss income; and the U portion ‘of% net income attributable to sources within the United States may be determined hy iproeesses or formulas ot general apportionment prescribed by the with the hpproynl of the Secretary. h Gains, prodteandiinoom from (1) transportation `or other services rendered. partly ·within and partly without the United Stem, or ‘(2) from the dale ot personhl property produced (in whole or inpnrt) iby the tnxpinyer within and ?sold without the United States;. or (in whole or in port) _ by the `texpayer withonfend`aold‘w1tl1in the United.;Stnt$, shall be as partly hom sources within and partly trom sources without the United States. Gains, prodts and income derived from the_pnr@se ot per- . sonel property. within and its Bale withodt the ynited Stntee U or from the purchase of personal property without had its sele Within the.·United Staliésv shall be ·t®ted as derh?ed_ entirely from sources within the country in which sold, except that gains, protlts and income. derived from the pnrohese ot personal property within the United Statu ml ite sale within s pomwlnn of the United States or from the pnrohese ot personal. property within n lon of thée United States and its mle within the United States shall be »t1‘eaLted. is derived partly from sources within and partly from muroes withoutthe United States o “ » (1) used in this section the words "sa»le"' or “sold"` inclnde “ exehdnge"’ or " exchanged "·$ and the word " prodnted "' U includes " crmted,*’ ‘l‘ tahricatedif " manufaéturedf " extreeted," _ "processed," "cured,’* or_"_nged.?" ° “ — - . ( §) (1) meept as provided in paragraph (2) a nonresident aliennindivlduol or aoitizen entftletl to the henedts of muon
