CH. 1—NORMAL TAXES AND SURTAXES
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' b u t only if the profit, if such transaction had resulted in a profit, would be taxable under this subtitle. (2) The deduction for losses of property not connected with the trade or business if arising from certain casualties or theft, allowed by section 165(c)(3), shall be allowed whether or not connected with income from sources within the United States, but only if the ul loss is of property within the United States. (c) CHARITABLE CONTRIBUTIONS.—The deduction for charitable contributions and gifts provided by section 170 shall be allowed whether or not connected with income from sources within the United States^ but only as to contributions or gifts made to domestic corporations, or to community chests, funds, or foundations, created in the United States. (d) PERSONAL E X E M P T I O N. — I n the case of a nonresident alien individual who is not a resident of a contiguous country, only one exemption under section 151 shall be allowed as a deduction. (e) STANDARD DEDUCTION.—
For disallowance of standard deduction, see section 142(b)(1). SEC. 874. ALLOWANCE OF DEDUCTIONS AND CREDITS. (a) R E T U R N PREREQUISITE TO ALLOWANCE.—A nonresident alien individual shall receive the benefit of the deductions and credits allowed to him in this subtitle only by filing or causing to be filed a true and accurate return of his total income received from all sources in the United States, in the manner prescribed in subtitle F (sec. 6001 and following,, relating to procedure and administration), including therein all the information which the Secretary or his delegate may deem necessary for the calculation of such deductions and credits. This subsection shall not be construed to deny the credits provided by sections 31 and 32 for tax withheld at the source. (b) T A X WITHHELD AT SOURCE.—The benefit of the deduction for exemptions under section 151 may, in the discretion of the Secretary or his delegate, and under regulations prescribed by the Secretary or his delegate, be received by a nonresident alien individual.entitled thereto, by filing a claim therefor with the withholding agent. (c) FOREIGN T A X CREDIT N O T ALLOWED.—A nonresident alien individual shall not be allowed the credits against the tax for taxes of foreign countries and possessions of the United States allowed by section 901. SEC. 875. PARTNERSHIPS. For purposes of this subtitle, a nonresident alien individual shall be considered as being engaged in a trade or business within the United States if the partnership of which he is a member is so engaged. SEC. 876. ALIEN RESIDENTS OF PUERTO RICO. (a) N o
APPLICATION TO CERTAIN A L I E N RESIDENTS OP P U E R TO
Rico.—This subpart shall not apply to an alien individual who is a bona fide resident of Puerto Rico during the entire taxable year, and such alien shall be subject to the tax imposed by section 1. (b) CROSS R E F E R E N C E. — For exclusion from gross income of income derived from sources within Puerto Rico, see section 933.
§ 876(b) 49012°—54
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