Source of Income
United States persons (including citizens, residents, and U.S. corporations) are generally subject to U.S. federal income tax on their worldwide income. Foreign persons (i.e., persons who are not U.S. persons) are subject to U.S. federal income tax only on income from a U.S. business and certain income from United States sources. Source of income is determined based on the type of income. The source of compensation income is the place where the services giving rise to the income were performed. The source of certain income, such as dividends and interest, is based on location of the residence of the payor. The source of income from property is based on the location where the property is used. Significant additional rules apply.
Read more about this topic: Gross Income
Famous quotes containing the words source of, source and/or income:
“... thoughts are a “source of intentionality”Mi.e., nothing would be intentional were it not for the fact that thoughts are intentional.”
—Roderick M. Chisholm (b. 1916)
“The source of all life and knowledge is in man and woman, and the source of all living is in the interchange and the meeting and mingling of these two: man-life and woman-life, man-knowledge and woman-knowledge, man-being and woman-being.”
—D.H. (David Herbert)
“Happy are those who find wisdom, and those who get understanding, for her income is better than silver, and her revenue better than gold. She is more precious than jewels, and nothing you desire can compare with her. Long life is in her right hand; in her left hand are riches and honor. Her ways are ways of pleasantness, and all her paths are peace. She is a tree of life to those who lay hold of her; those who hold her fast are called happy.”
—Bible: Hebrew, Proverbs 3:13-18.