U.S. Code » Title 26 » Subtitle Subtitle A— Income Taxes › Chapter CHAPTER 1— NORMAL TAXES AND SURTAXES › Subchapter Subchapter N— Tax Based on Income From Sources Within or Without the United States › Part PART III— INCOME FROM SOURCES WITHOUT THE UNITED STATES › Subpart Subpart D— Possessions of the United States

26 U.S.C. § 937

Residence and source rules involving possessions

Read at: OLRCuscode.house.gov CornellLII GovInfogovinfo.gov JustiaTitle 26 CasesGoogle Scholar
(a) Bona fide residentFor purposes of this subpart, section 865(g)(3), section 876, section 881(b), paragraphs (2) and (3) of section 901(b), section 957(c), section 3401(a)(8)(C), and section 7654(a), except as provided in regulations, the term “bona fide resident” means a person—(1) who is present for at least 183 days during the taxable year in Guam, American Samoa, the Northern Mariana Islands, Puerto Rico, or the Virgin Islands, as the case may be, and(2) who does not have a tax home (determined under the principles of section 911(d)(3) without regard to the second sentence thereof) outside such specified possession during the taxable year and does not have a closer connection (determined under the principles of section 7701(b)(3)(B)(ii)) to the United States or a foreign country than to such specified possession.For purposes of paragraph (1), the determination as to whether a person is present for any day shall be made under the principles of section 7701(b).(b) Source rulesExcept as provided in regulations, for purposes of this title—(1) except as provided in paragraph (2), rules similar to the rules for determining whether income is income from sources within the United States or is effectively connected with the conduct of a trade or business within the United States shall apply for purposes of determining whether income is from sources within a possession specified in subsection (a)(1) or effectively connected with the conduct of a trade or business within any such possession, and(2) any income treated as income from sources within the United States or as effectively connected with the conduct of a trade or business within the United States shall not be treated as income from sources within any such possession or as effectively connected with the conduct of a trade or business within any such possession.(c) Reporting requirement(1) In general

If, for any taxable year, an individual takes the position for United States income tax reporting purposes that the individual became, or ceases to be, a bona fide resident of a possession specified in subsection (a)(1), such individual shall file with the Secretary, at such time and in such manner as the Secretary may prescribe, notice of such position.

(2) Transition rule

If, for any of an individual’s 3 taxable years ending before the individual’s first taxable year ending after the date of the enactment of this subsection, the individual took a position described in paragraph (1), the individual shall file with the Secretary, at such time and in such manner as the Secretary may prescribe, notice of such position.

(Added Pub. L. 108–357, title VIII, § 908(a), Oct. 22, 2004, 118 Stat. 1655.)Editorial NotesReferences in Text

The date of the enactment of this subsection, referred to in subsec. (c)(2), is the date of enactment of Pub. L. 108–357, which was approved Oct. 22, 2004.

Statutory Notes and Related SubsidiariesEffective Date

Pub. L. 108–357, title VIII, § 908(d), Oct. 22, 2004, 118 Stat. 1657, provided that:“(1)In general.—Except as otherwise provided in this subsection, the amendments made by this section [enacting this section and amending sections 931, 932, 934, 935, 957, and 6688 of this title] shall apply to taxable years ending after the date of the enactment of this Act [Oct. 22, 2004].“(2) 183-day rule.—Section 937(a)(1) of the Internal Revenue Code of 1986 (as added by this section) shall apply to taxable years beginning after the date of the enactment of this Act.“(3)Sourcing.—Section 937(b)(2) of such Code (as so added) shall apply to income earned after the date of the enactment of this Act.”

Notes of Decisions
Cited in 37 cases, 1930–2013 · leading case: Bartholomew v. Dist. of Columbia Off. of Tax & Revenue, 78 A.3d 309 (D.C. 2013).
Sort: Relevance Newest Treatment
Bartholomew v. Dist. of Columbia Off. of Tax & Revenue, 78 A.3d 309 (D.C. 2013). · cites it 3× “” 26 U.S.C. § 937 . 14 Applying that test to the facts in this case, we have to disagree with OAH’s determination that Bartholomew was not a bona fide USVI resident.”
Helvering v. Cmty. Bond & Mortg. Corp., 74 F.2d 727 (2d Cir. 1935). “9 , 17, 41, 26 USCA §§ 937 (a) (1), (b), 986 (a) (1, 4).”
Athol Mfg. Co. v. Comm'r of Internal Revenue, 54 F.2d 230 (1st Cir. 1931). “The Board of Tax Appeals held that the petitioner was a distinct entity from the old corporation; that the losses of the old corporation in 1922 and 1923 were not the losses of the petitioner under section 206 (b) (e) and (f) of the Revenue Aet of' 1924 (26 USCA § 937 and note),…”
United States Trust Co. of New York v. Sears, 29 F. Supp. 643 (D. Conn. 1939). “§ 937, 26 U.S.C.A. § 937 ; In re Arons’ Estate, 161 Misc.”
Wyoming Inv. Co. v. Comm'r, 70 F.2d 191 (10th Cir. 1934). “The loss in 1928 has not been allowed as a credit against the consolidated net income for 1927, under section 206 of the Revenue Act of 1926 (26 USCA § 937). The consolidated net income for 1927 was increased by $64,200, and upon this revised net income the Commissioner computed…”
Clark Dredging Co. v. Comm'r of Internal Rev., 63 F.2d 527 (5th Cir. 1933). “Section 206 (b) (é) and (f), 26 USCA § 937 (b, e, f). No provision is made for allowing in 1924 a net loss sustained in 1921.”
Nat'l Slag Co. v. Comm'r of Internal Revenue, 47 F.2d 846 (3rd Cir. 1931). · cites it 4× “” Section 206 (b) of the Revenue Act of 1924 (26 USCA § 937 (b) provides that if for any taxable year a taxpayer has sustained a net loss, the amount thereof shall be allowed as a deduction in computing the net income of the taxpayer for the succeeding taxable year (called the…”
Am. Pac. Whaling Co. v. Comm'r, 74 F.2d 613 (9th Cir. 1935). “9 (26 USCA § 937 (b), which is as follows: “Sec.”
Dalton v. Bowers, 56 F.2d 16 (2d Cir. 1932). · cites it 2× “260 [26 USCA § 937]). Under subdivision (a) the “net loss” means the excess of the deductions allowed by section 214 (26 USCA § 955 and note) or section 234 (26 USCA § 886) over the gross income, with the following exceptions and limitations: “(1) Deductions otherwise allowed by…”
Piper v. Willcuts, 64 F.2d 813 (8th Cir. 1933). “17 (26 USCA § 937). Under the heading “net losses” we find: Sec.”
May Oil Burner Corp. v. Comm'r, 71 F.2d 644 (4th Cir. 1934). “17 , 26 USCA § 937 (b), to deduct from its income in 1926 the net losses sustained by a New York corporation in 1924 and 1925, in view of the fact that the Maryland corporation continued the same business and had the same officers and the same stockholders in the same proportion…”
Delaware & Hudson Co. v. Comm'r of Internal Revenue, 65 F.2d 292 (2d Cir. 1933). · cites it 2× “” This would cover such of the affiliates at bar as had suffered losses in both years.”
Show all 37 citing cases →
— 26 U.S.C. § 937(b) — 6 cases
Delaware & Hudson Co. v. Comm'r of Internal Revenue, 65 F.2d 292 (2d Cir. 1933). “” This would cover such of the affiliates at bar as had suffered losses in both years.”
Joseph & Feiss Co. v. Comm'r, 70 F.2d 804 (6th Cir. 1934).
Planters' Oil Co. v. Hopkins, 47 F.2d 659 (N.D. Tex. 1931).
Woolford Realty Co. v. Rose, 44 F.2d 856 (N.D. Ga. 1930).
Woolford Realty Co. v. Rose, 53 F.2d 821 (5th Cir. 1931).
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.