[Code of Federal Regulations]
[Title 26, Volume 18, Parts 500 to 599]
[Revised as of April 1, 2000]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR520.107]

[Page 130]
 
                       TITLE 26--INTERNAL REVENUE
 
     CHAPTER 1--INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY 
                               (Continued)
 
PART 520--SWEDEN--Table of Contents
 
                       Subpart--General Income Tax
 
Sec. 520.107  Income from real property.

    Income of whatever nature derived by a nonresident alien individual 
resident in Sweden or by a Swedish corporation or other entity from real 
property situated in the United States, including gains derived from the 
sale of such property, is not exempt from taxation by the convention. 
The treatment of such income for taxation purposes is governed by those 
provisions of the Internal Revenue Code applicable generally to the 
taxation of nonresident aliens and foreign corporations. Interest 
derived from mortgages or bonds secured by real property does not 
constitute income from real property within the meaning of the 
convention but is subject to the provisions applicable to interest 
generally. See Article VIII of the convention and Sec. 520.110.