Treasury Regulations · 26 CFR
§ 1.872-1. Gross income of nonresident alien individuals.
Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).
Regulation under 26 U.S.C. § 872
Cite as 26 CFR § 1.872-1
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- November 26, 1960 by T.D. 6500
- Last amended
- December 23, 1974 by T.D. 7332
- Issued under
- 26 U.S.C. § 872
- Length
- 724 words · about 3 min to read
- Cross-references
- cites 5 Code sections and 9 regulations; cited by 3
¶(a) In general—
¶(1) Inclusions. The gross income of a nonresident alien individual for any taxable year includes only (i) the gross income which is derived from sources within the United States and which is not effectively connected for the taxable year with the conduct of a trade or business in the United States by that individual and (ii) the gross income, irrespective of whether such income is derived from sources within or without the United States, which is effectively connected for the taxable year with the conduct of a trade or business in the United States by that individual. For the determination of the sources of income, see sections 861 through 863 and the regulations thereunder. For the determination of whether income from sources within or without the United States is effectively connected for the taxable year with the conduct of a trade or business in the United States, see sections 864(c) and 871 (c) and (d), §§ 1.864-3 through 1.864-7, and §§ 1.871-9 and 1.871-10. For special rules for determining the income of an alien individual who changes his residence during the taxable year, see § 1.871-13.
¶(2) Exchange transactions. Even though a nonresident alien individual who effects certain transactions in the United States in stocks, securities, or commodities during the taxable year may not, by reason of section 864(b)(2) and paragraph (c) or (d) of § 1.864-2, be engaged in trade or business in the United States during the taxable year through the effecting of such transactions, nevertheless he shall be required to include in gross income for the taxable year the gains and profits from those transactions to the extent required by § 1.871-7 or § 1.871-8.
¶(b) Individuals not engaged in U.S. business. In the case of a nonresident alien individual who at no time during the taxable year is engaged in trade or business in the United States, the gross income shall include only (1) the gross income from sources within the United States which is described in section 871(a) and paragraphs (b), (c), and (d) of § 1.871-7, and (2) the gross income from sources within the United States which, by reason of section 871 (c) or (d) and § 1.871-9 or § 1.871-10, is treated as effectively connected for the taxable year with the conduct of a trade or business in the United States by that individual.
¶(c) Individuals engaged in U.S. business. In the case of a nonresident alien individual who is engaged in trade or business in the United States at any time during the taxable year, the gross income shall include (1) the gross income from sources within and without the United States which is effectively connected for the taxable year with the conduct of a trade or business in the United States by that individual, (2) the gross income from sources within the United States which, by reason of the election provided in section 871(d) and § 1.871-10, is treated as effectively connected for the taxable year with the conduct of a trade or business in the United States by that individual, and (3) the gross income from sources within the United States which is described in section 871(a) and paragraphs (b), (c), and (d) of § 1.871-7 and is not effectively connected for the taxable year with the conduct of a trade or business in the United States by that individual.
¶(f) Effective date. This section shall apply for taxable years beginning after December 31, 1966. For corresponding rules applicable to taxable years beginning before January 1, 1967, see 26 CFR 1.872-1 (Revised as of January 1, 1971).
[T.D. 6500, 25 FR 11910, Nov. 26, 1960, as amended by T.D. 7332, 39 FR 44228, Dec. 23, 1974]
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
- § 861 Income from sources within the United States
- § 864 Definitions and special rules
- § 871 Tax on nonresident alien individuals
- § 877 Expatriation to avoid tax
- § 876 Alien residents of Puerto Rico, Guam, American Samoa, or the Northern Mariana Islands
Regulations it cites
- § 1.864-3 Rules for determining income effectively connected with U.S. business of nonresident aliens or foreign corporations.
- § 1.871-9 Nonresident alien students or trainees deemed to be engaged in U.S. business.
- § 1.871-13 Taxation of individuals for taxable year of change of U.S. citizenship or residence.
- § 1.864-2 Trade or business within the United States.
- § 1.871-7 Taxation of nonresident alien individuals not engaged in U.S. business.
- § 1.871-8 Taxation of nonresident alien individuals engaged in U.S. business or treated as having effectively connected income.
- § 1.872-2 Exclusions from gross income of nonresident alien individuals.
- § 1.871-10 Election to treat real property income as effectively connected with U.S. business.
- § 1.876-1 Alien residents of Puerto Rico, Guam, American Samoa, or the Northern Mariana Islands.
Cited by 3 other regulations
Amendment history
From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.
- Amended by T.D. 7332 (39 FR 44228)
- Issued by T.D. 6500 (25 FR 11910)
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- Nonresident alien individuals
Nearby sections
- § 1.871-12 Determination of tax on treaty income.
- § 1.871-13 Taxation of individuals for taxable year of change of U.S. citizenship or residence.
- § 1.871-14 Rules relating to repeal of tax on interest of nonresident alien individuals and foreign corporations received from certain portfolio debt investments.
- § 1.871-15 Treatment of dividend equivalents.
- § 1.872-1 Gross income of nonresident alien individuals.
- § 1.872-2 Exclusions from gross income of nonresident alien individuals.
- § 1.873-1 Deductions allowed nonresident alien individuals.
- § 1.874-1 Allowance of deductions and credits to nonresident alien individuals.
- § 1.875-1 Partnerships.