26 U.S.C. § 887 - U.S. Code - Unannotated Title 26. Internal Revenue Code § 887. Imposition of tax on gross transportation income of nonresident aliens and foreign corporations

(1) In general.--Except as provided in paragraphs (2) and (3), the term “United States source gross transportation income” means any gross income which is transportation income (as defined in section 863(c)(3)) to the extent such income is treated as from sources in the United States under section 863(c)(2). To the extent provided in regulations, such term does not include any income of a kind to which an exemption under paragraph (1) or (2) of section 883(a) would not apply.

(2) Exception for certain income effectively connected with business in the United States.--The term “United States source gross transportation income” shall not include any income taxable under section 871(b) or 882.

(3) Exception for certain income taxable in possessions.--The term “United States source gross transportation income” does not include any income taxable in a possession of the United States under the provisions of this title as made applicable in such possession.

(4) Determination of effectively connected income.--For purposes of this chapter, United States source gross transportation income of any taxpayer shall not be treated as effectively connected with the conduct of a trade or business in the United States unless--