TITLE 26
> Subtitle
A >
CHAPTER 1 >
Subchapter
N >
PART
I > Sec. 864.
Sec. 864.
- Definitions and special rules
(b) Trade or business within
the United States
For purposes of this part, part II, and chapter 3, the term ''trade
or business within the United States''
includes the performance of personal
services within the United States
at any time within the taxable
year, but
does not include -
(1) Performance of personal services for foreign employer
The performance of personal services
-
(A) for a nonresident alien individual, foreign partnership, or
foreign corporation, not engaged in
trade or business within the United States, or
(B) for an office or place of business maintained in a foreign country
or in a possession of the
United States by an individual who is a citizen
or resident of the
United States or by a
domestic partnership or a domestic corporation, by a nonresident alien
individual
temporarily present in the United States
for a period or periods not exceeding a
total of 90 days during the taxable year and whose compensation
for such
services does not exceed in the aggregate $3,000.
(2) Trading in securities or commodities
(A) Stocks and securities
(i) In general
Trading in stocks or securities through a resident broker, commission
agent,
custodian, or other independent agent.
(ii) Trading for taxpayer's own account
Trading in stocks or securities for the taxpayer's own account, whether
by the
taxpayer or his employees or through a resident broker, commission agent,
custodian, or other agent, and whether or not any such employee or agent
has
discretionary authority to make decisions in effecting the transactions.
This
clause shall not apply in the case of a dealer in stocks or securities.
(B) Commodities
(i) In general
Trading in commodities through a resident broker, commission agent,
custodian, or other independent agent.
(ii) Trading for taxpayer's own account
Trading in commodities for the taxpayer's own account, whether by the
taxpayer or his employees or through a resident broker, commission agent,
custodian, or other agent, and whether or not any such employee or agent
has discretionary authority to make decisions in effecting the transactions.
This clause shall not apply in the case of a dealer in commodities.
(iii) Limitation
Clauses (i) and (ii) shall apply only if the commodities are of a kind
customarily dealt in on an organized commodity exchange and if the
transaction is of a kind customarily consummated at such place.
(C) Limitation
Subparagraphs (A)(i) and (B)(i) shall apply only if, at no time during
the taxable
year, the taxpayer has an office or other fixed place of business in
the United
States through which or by the direction of which the transactions in
stocks or
securities, or in commodities, as the case may be, are effected.