2004 Results:

* One file (section) may contain several matches (written occurrences).

1. "taxable income": (817 file(s) found)
2. "excluded income": (7 file(s) found)
3. "eliminated income": (2 file(s) found) Secs. 861-8 and 861-8T
4. "Computation of taxable income from sources within the United States": (3 file(s) found in 2003, only 1 file in 2004)
5. "computation of taxable income": (37 file(s) found)
6. "determine taxable income": (6 file(s) found)
7. "determining taxable income": (29 file(s) found)
8. "items" and "excluded income": (3 file(s) found)
9. "exempt income means": (2 file(s) found)
10. "nonexempt income": (1 file(s) found)
11. "exempt income": (65 file(s) found)
12. "exempt asset": (4 file(s) found)
13. "excluded": (658 file(s) found)
14. "determine tax": (8 file(s) found)
15. "determination of taxable income": (28 file(s) found)
16. "determination of source of taxable income": (3 file(s) found)
17. "sources" and "excluded income": (5 file(s) found)
18. "sources" and "detemining taxable income": (12 file(s) found) - See Sec. 861-8
19. "sections" and "excluded income": (5 file(s) found)
20. "applying" and "rules" and "determining taxable income": (9 file(s) found)
21. "how to": (38 file(s) found)
22. "income that is exempt" (6 file(s) found in 2003 edition) - Only 5 file(s) found in 2004 edition. The missing file is Section 861-8T(d)(2).
23. "deduction": (1634 file(s) found)
24. "required to file": (219 file(s) found)
25. "in the case of a citizen": (6 file(s) found)
26. "gross income": (1186 file(s) found)
27. "gross income means": (6 file(s) found)
28. "allocated to gross income": (5 file(s))
29. "allocating deductions": (5 files, 15 matches)
30. "computation of income": (12 file(s) found)
31. "categories of income": (17 file(s) found)
32. "taxable income from sources within the United States": (8 file(s) found in 2003. Only 6 files found in 2004.)
33. "determine income": (6 file(s) found)
34. "scope" and "taxable income": (111 file(s) found) [WinMerge tool required]
35. "operative section": (3 file(s) found)
36. "sources": (525 file(s) found)
37. "determine the source": (5 file(s) found)
38. "source of income": (35 file(s) found)
39. "income derived from": (152 file(s) found)
40. "allocating expenses": (4 file(s) found)

Basic search terms found in Title 26 CFR

1. "computing income tax": (2 file(s) found) [n/a, junk]
2. "tax": (5444 file(s) found)
3. "the tax": (3409 file(s) found)
4. "the tax is determined": (3 file(s) found) [Winmerge required for search]
5. "taxable": (3190 file(s) found)
6. "is taxable": (255 file(s) found)
7. "is taxable income": (33 file(s) found)
8. "item": (1259 file(s) found)
9. "items": (993 file(s) found)
10. "common items": (1 file(s) found) ["More common items... are... excluded from gross income entirely"]
11. "any item": (164 file(s) found)
12. "item of income": (85 file(s) found)
13. "following items": (87 file(s) found)
14. "items of gross": (50 file(s) found)
15. "item of taxable income": (0 file(s) found)
16. "items of taxable income": (4 file(s) found) [26CFR1.6011-4 is interesting]
17. "prescribing" and "deduction" and "taxable income": (3 file(s) found)
18. "specific": (884 file(s) found)
19. "guidance": (361 file(s) found)
20. "allocated": (712 file(s) found)
21. "allocation": (687 file(s) found)
22. "liable to": (63 file(s) found)
23. "liable for": (292 file(s) found)
24. "liable to the tax": (4 file(s) found)
25. "liable for the tax": (72 file(s) found)
26. "income tax": (3889 file(s) found)
27. "determine income tax": (1 file(s) found) [term found once inside "redetermine income tax"]
28. "determining tax": (49 file(s) found)
29. "determining taxable": (35 file(s) found)
30. "rule": (3243 file(s) found)
31. "rules": (2754 file(s) found)
32. "the rules": (1338 file(s) found)
33. "this section provides rules for": (89 file(s) found)
34. "for determining": (501 file(s) found)
35. "source": (1188 file(s) found)
36. "specific source": (2 file(s) found) [See 861-8, includes "specific sources", 2nd file is uninteresting]
37. "includes taxable income": (1 file(s) found) [uninteresting]
38. "exempt": (1398 file(s) found)
39. "list": (610 file(s) found)
40. "lists": (158 file(s) found)
"list of exemptions": (3 file(s) found) [1 regulation shown, some interest]
41. "deductible income": (0 file(s) found)
42. "list of deductions": (0 file(s) found)
43. "non taxable income": (0 file(s) found)
44. "non-taxable income": (1 file(s) found) [uninteresting]
45. "gross income definition": (0 file(s) found)
46. "gross income defined": (3 file(s) found) [uninteresting]
47. "defining gross income": (0 file(s) found)
48. "deductable": (1 file(s) found) [uninteresting]
49. "deductions": (916 file(s) found)
50. "imposed": (1323 file(s) found)
51. "imposes": (173 file(s) found)

Results: 1 through ... N - Use the links above

- "taxable income": (817 file(s) found)

26CFR1.1-1
(a)(1)...The tax imposed is upon taxable income (determined by subtracting the allowable deductions from gross income)...

[ This is rule #1 in the Code of Federal Regulations (CFR, the rules), which is based on a similar statement in the United States Code (USC, the law). ]

- "exempt asset": (4 file(s) found)

26CFR1.1-1
(ii) Exempt income and exempt asset defined--(A) In general. For purposes of this section, the term exempt income means any income that s, in whole or in part, exempt, excluded, or eliminated for federal income tax purposes. The term exempt asset means any asset the income from which is, in whole or in part, exempt, excluded, or eliminated for federal tax purposes.

[ This is rule #1 in the Code of Federal Regulations (CFR, the rules), which is based on a similar statement in the United States Code (USC, the law). ]

- "excluded": (626 file(s) found)

CFR Sec. 61
(b) "Cross references to other provisions of the Code are to be found throughout the regulations under section 61. The purpose of these cross references is to direct attention to the more common items which are included in or excluded from gross income entirely, or treated in some special manner. To the extent that another section of the Code or of the regulations thereunder, provides specific treatment for any item of income, such other provision shall apply notwithstanding section 61... "

[ Incredible! More common items... are... excluded from gross income entirely? Like items listed in USC Sec. 61? Does the specific treatment for any item include these items also... notwithstanding section 61? If so, "such other provision shall apply". Cross refences are found in USC Sec. 61, but they are being removed from it. See Cross References ]

- "eliminated income": (2 file(s) found)

26CFR1.861-8
(d) (2) Allocation and apportionment to exempt, excluded, or eliminated
income. [Reserved] For guidance, see Sec. 1.861-8T(d)(2).

[ This term only occurs in 861-8 and 861-8T. ]

- "determine tax": (8 file(s) found)

CFR Sec. 861-8 Computation of taxable income from sources within the United States and from other sources and activities.

(a) In general--(1) Scope. Sections 861(b) and 863(a) state in general terms how to determine taxable income of a taxpayer from sources within the United States after gross income from sources within the United States has been determined. Sections 862(b) and 863(a) state in general terms how to determine taxable income of a taxpayer from sources without the United States after gross income from sources without the United States has been determined. This section provides specific guidance... See paragraph (f)(1) of this section for a list...

(a)(4) the [...income] may include, or consist entirely of, excluded income. See paragraph (d)(2) of this section with respect to... excluded income.

[ Just one section in the CFR has both text strings "determine tax" and "excluded income". This one section is also the only section that tells us "how to determine taxable income", and is found under the title "Computation of taxable income". ]

- "nonexempt income": (1 file(s) found)

26CFR1.265-1(b)
Exempt income and nonexempt income. (1) As used in this section, the term class of exempt income means any class of income (whether or not any amount of income of such class is received or accrued) wholly exempt from the taxes imposed by Subtitle A of the Code. For purposes of this section, a class of income which is considered as wholly exempt from the taxes imposed by subtitle A includes any class of income which is:
(i) Wholly excluded from gross income under any provision of Subtitle A, or
(ii) Wholly exempt from the taxes imposed by Subtitle A under the provisions of any other law.
(2) As used in this section the term nonexempt income means any income which is required to be included in gross income.

Sec. 265 has the definition of "nonexempt income", and Sec. 861 has the definition of "exempt income and exempt asset".

26CFR1.861-8T(d)(2)(ii)
Exempt income and exempt asset defined--(A) In general. For purposes of this section, the term exempt income means any income that is, in whole or in part, exempt, excluded, or eliminated for federal income tax purposes.

[ Notice Sec. 265-1(b) says "nonexempt income... is required to be included in gross." And, after the definition of exempt income is prescribed, the very next paragraph is the list of nonexempt income ...or Income That Is Taxable. Why isn't the income of most Americans listed in Sec. 861-8T(d)(2)(iii)? This shows such income is not required to be included in gross. ]

26CFR1.861-8T(d)(2)(iii)
Income that is not considered tax exempt. The following items are not considered to be exempt, eliminated, or excluded income and, thus, [are taxable] may have expenses, losses, or other deductions allocated and apportioned to them:
(A)... [ ...all foreign concerns ]
(B)...
(C)...
(D)...

["Income that is not considered tax exempt" is a double negative, which also means "Income That Is Taxable"]

- "exempt income": (65 file(s) found)

26CFR1.265-1(b)
Exempt income and nonexempt income. (1) As used in this section, the term class of exempt income means any class of income (whether or not any amount of income of such class is received or accrued) wholly exempt from the taxes imposed by Subtitle A of the Code. For purposes of this section, a class of income which is considered as wholly exempt from the taxes imposed by subtitle A includes any class of income which is:
(i) Wholly excluded from gross income under any provision of Subtitle A, or
(ii) Wholly exempt from the taxes imposed by Subtitle A under the provisions of any other law.
(2) As used in this section the term nonexempt income means any income which is required to be included in gross income.

26CFR1.861-8T(d)(2)(ii)
Exempt income and exempt asset defined--(A) In general. For purposes of this section, the term exempt income means any income that is, in whole or in part, exempt, excluded, or eliminated for federal income tax purposes.

[ Notice Sec. 265-1(b) says "nonexempt income... is required to be included in gross." After the definition of exempt income is prescribed, the very next paragraph is the list of nonexempt income ...or Income That Is Taxable. Why isn't the income of most Americans listed in Sec. 861-8T(d)(2)(iii)? It shows such income is not required to be included in gross. ]

26CFR1.861-8T(d)(2)(iii)
Income that is not considered tax exempt. The following items are not considered to be exempt, eliminated, or excluded income and, thus, [are taxable and] may have expenses, losses, or other deductions allocated and apportioned to them:
(A)... [ ...all foreign concerns ]
(B)...
(C)...
(D)...

["Income that is not considered tax exempt" is a double negative, which also means "Income That Is Taxable"]

- "exempt income means": (2 file(s) found)

26CFR1.265-1(b)
Exempt income and nonexempt income. (1) As used in this section, the term class of exempt income means any class of income (whether or not any amount of income of such class is received or accrued) wholly exempt from the taxes imposed by Subtitle A of the Code. For purposes of this section, a class of income which is considered as wholly exempt from the taxes imposed by subtitle A includes any class of income which is:
(i) Wholly excluded from gross income under any provision of Subtitle A, or
(ii) Wholly exempt from the taxes imposed by Subtitle A under the provisions of any other law.
(2) As used in this section the term nonexempt income means any income which is required to be included in gross income.

26CFR1.861-8T(d)(2)(ii)
Exempt income and exempt asset defined--(A) In general. For purposes of this section, the term exempt income means any income that is, in whole or in part, exempt, excluded, or eliminated for federal income tax purposes.

[ Again, the same results from "exempt income." Sec. 265-1(b) says "nonexempt income... is required to be included in gross." After the definition of exempt income is prescribed, the very next paragraph is the list of nonexempt income ...or Income That Is Taxable. Why isn't the income of most Americans listed in Sec. 861-8T(d)(2)(iii)? It shows such income is not required to be included in gross. ]

26CFR1.861-8T(d)(2)(iii)
Income that is not considered tax exempt. The following items are not considered to be exempt, eliminated, or excluded income and, thus, [are taxable and] may have expenses, losses, or other deductions allocated and apportioned to them:
(A)... [ ...all foreign concerns ]
(B)...
(C)...
(D)...

["Income that is not considered tax exempt" is a double negative, which also means "Income That Is Taxable"]

- "excluded income": (7 file(s) found)

26CFR1.861-8 (a)(4)
...the term ``statutory grouping of gross income'' or ``statutory grouping'' means the gross income from a specific source or activity which must first be determined in order to arrive at ``taxable income'' from which specific source or activity under an operative section. (See paragraph (f)(1) of this section.)...
...In some instances, where the operative section so requires, the statutory grouping or the residual grouping may include, or consist entirely of, excluded income. See paragraph (d)(2) of this section with respect to the allocation and apportionment of deductions to excluded income.

26CFR1.861-8(b)
Allocation--(1) In general. For purposes of this section, the gross income to which a specific deduction is definitely related is referred to as a ``class of gross income'' and may consist of one or more items of gross income. The rules emphasize the factual relationship between the deduction and a class of gross income. See paragraph (d)(1) of this section which provides that in a taxable year there may be no item of gross income in a class or less gross income than deductions allocated to the class, and paragraph (d)(2) of this section which provides that a class of gross income may include excluded income.

26CFR1.861-8T(d)(2)(iii)
Income that is not considered tax exempt. The following items are not considered to be exempt, eliminated, or excluded income and, thus, [are taxable and] may have expenses, losses, or other deductions allocated and apportioned to them:
(A)... [ ...all foreign concerns ]
(B)...
(C)...
(D)...

[ "Income that is not considered tax exempt" is a double negative, which simply means "Income that is taxable income". In other words, this list is telling us what is taxed, and it's the only list of items to do so. ]

- "income that is exempt": (6 file(s) found in 2003 edition) - Only 5 file(s) in 2004.

The missing file in year 2004 is Section 861-8T(d)(2). This problem applies to searching on your Windows OS. Always compare results to a GPO search engine, like ecfr.gpoaccess.gov. The new editing by the GPO's other website places a line break, or carraige return just after "income" (not here, in the original). Some tools can get passed this problem, search for one. In Windows, it is necessary to search for "income" and "that is exempt" for 2004 regulations. - "exempt" and "excluded" also work. Use WinMerge, or http://ecfr.gpoaccess.gov

CFR Sec. 861-8T(d)(2)
Allocation and apportionment to exempt, excluded or eliminated income--(i) In general. In the case of taxable years beginning after December 31, 1986, except to the extent otherwise permitted by Sec. 1.861-13T, the following rules shall apply to take account of income that is exempt or excluded, or assets generating such income, with respect to allocation and apportionment of deductions.
(A) Allocation of deductions. In allocating deductions that are definitely related to one or more classes of gross income, exempt income (as defined in paragraph (d)(2)(ii) of this section) shall be taken into account.

(ii) Exempt income and exempt asset defined--(A) In general. For purposes of this section, the term exempt income means any income that is, in whole or in part, exempt, excluded, or eliminated for federal income tax purposes. The term exempt asset means any asset the income from which is, in whole or in part, exempt, excluded, or eliminated for federal tax purposes.

[ If income is exempt income, it is eliminated for federal income tax purposes. In the very next subparagraph we see the only list of Income that is Not exempt. ]

(iii) Income that is not considered tax exempt. The following items are not considered to be exempt, eliminated, or excluded income and, thus, [are taxable and] may have expenses, losses, or other deductions allocated and apportioned to them:
(A) In the case of a foreign taxpayer
(B) the gross income of a DISC or a FSC;
(C) the gross income of a possessions corporation; and
(D) Foreign earned income

- "deduction": (1634 file(s) found)

26CFR1.863-3(d)
Determination of source of taxable income. Once the source of gross income has been determined under paragraph (c) of this section, the taxpayer must properly allocate and apportion separately under Secs. 1.861-8 through 1.861-14T the amounts of its expenses, losses, and other deductions to its respective amounts of gross income...

26CFR1.861-1(a)(1)
Within the United States.
The taxable income from sources within the United States, in the case of such income, shall be determined by deducting therefrom, in accordance with sections 861(b) and 863(a), the expenses, losses, and other deductions properly apportioned or allocated thereto and a ratable part of any other expenses, losses, or deductions which cannot definitely be allocated to some item or class of gross income. See Secs. 1.861-8 and 1.863-1.

26CFR1.861-8(a)(1)
Computation of taxable income from sources within the United States and from other sources and activities.
...This section provides specific guidance for applying the cited Code sections by prescribing rules for the allocation and apportionment of expenses, losses, and other deductions (referred to collectively in this section as ``deductions'') of the taxpayer. The rules contained in this section apply in determining taxable income of the taxpayer from specific sources and activities under other sections of the Code, referred to in this section as operative sections. See paragraph (f)(1) of this section for a list and description of operative sections.

CFR Sec. 861-8(a)(4)
... ``statutory grouping'' means the gross income from a specific source or activity which must first be determined in order to arrive at ``taxable income'' from which specific source or activity under an operative section. (See paragraph (f)(1) of this section.) Gross income from other sources or activities is referred to as the ``residual grouping of gross income'' or ``residual grouping.''
... In some instances, where the operative section so requires, the statutory grouping or the residual grouping may include, or consist entirely of, excluded income. See paragraph (d)(2) of this section with respect to the allocation and apportionment of deductions to excluded income.

[Paragraph (d)(2) directs us to -8T(d)(2).]

861-8T(d)(2)
(i)...the following rules shall apply to take account of income that is exempt or excluded, ...with respect to allocation and apportionment of deductions.
(A) Allocation of deductions. In allocating deductions that are definitely related to one or more classes of gross income, exempt income (as defined in paragraph (d)(2)(ii) of this section) shall be taken into account.

26CFR1.861-8(b)
Class of gross income. ...the gross income to which a specific deduction is definitely related ...is referred to as a ``class of gross income'' and may consist of one or more items of gross income. The rules emphasize the factual relationship between the deduction and a class of gross income. See paragraph (d)(1) of this section which provides that in a taxable year there may be no item of gross income in a class or less gross income than deductions allocated to the class, and paragraph (d)(2) of this section which provides that a class of gross income may include excluded income.

861-8T(d)(2)(ii)
(A)...the term exempt income means ANY INCOME that is, in whole or in part, exempt, excluded, or eliminated for federal income tax purposes.

[Immediately after the Secretary prescribes that exempt income is ANY INCOME eliminated for federal income tax purposes, 861-8T(d)(2)(iii) then tells us what is "Income that is not considered tax exempt", which also means "Income that Is Taxable", or in other words it is telling us What Is Taxed.]

861-8T(d)(2) Allocation and apportionment to exempt, excluded or eliminated income

(iii) Income that is not considered tax exempt. The following items are not considered to be exempt, eliminated, or excluded income and, thus, [are taxable and] may have expenses, losses, or other deductions allocated and apportioned to them:
(A) In the case of a foreign taxpayer (including a foreign sales corporation (FSC)) computing its effectively connected income, gross income (whether domestic or foreign source) which is not effectively connected to the conduct of a United States trade or business;
(B) In computing the combined taxable income of a DISC or FSC and its related supplier, the gross income of a DISC or a FSC;
(C) For all purposes under subchapter N of the Code, including the computation of combined taxable income of a possessions corporation and its affiliates under section 936(h), the gross income of a possessions corporation for which a credit is allowed under section 936(a); and
(D) Foreign earned income as defined in section 911 and the regulations thereunder (however, the rules of Sec. 1.911-6 do not require the allocation and apportionment of certain deductions, including home mortgage interest, to foreign earned income for purposes of determining the deductions disallowed under section 911(d)(6)).

[Why is the income of most Americans not listed as being taxable in "Income that is not considered tax exempt?" How do we find out exactly to what extent this rule, 861-8T(d)(2)(iii), covers? To find out, we must determine it's Scope. In addition, CFR Sec. 861-8(f)(1), states "sections of the Code which require the determination of taxable income" is also excluding the income of most Americans from it's own list. It actually makes perfect sense - if something is not included in a list, then by default, it has been excluded from the list. Can this be true? Yes, according to Principles of Statutory Construction, but also according to CFR Sec. 61(b), which says if there is another section of Code or regulations that treats any item of income more specifically than Sec. 61 does, then it shall apply.]

- "required to file": (219 file(s) found)

CFR Sec. 931-1(b)(4)
Returns. A citizen entitled to the benefits of section 931 is required to file with his individual return Form 1040 the schedule on Form 1040E. If a citizen entitled to the benefits of section 931 has no income from sources within the United States and does not receive within the United States any income derived from sources without the United States he is not required to file a return or the schedule on Form 1040E.

- "in the case of a citizen": (6 file(s) found)

26CFR1.931-1
(b)General rule--(1) Qualifications. In the case of a citizen of the United States or a domestic corporation satisfying the following conditions, gross income means only gross income from sources within the United States--
(i) If 80 percent or more of the gross income of such citizen or domestic corporation (computed without the benefit of section 931) for the 3-year period immediately preceding the close of the taxable year (or for such part of such period immediately preceding the close of such taxable year as may be applicable) was derived from sources within a possession of the United States, and
(ii) If 50 percent or more of the gross income of such citizen or domestic corporation (computed without the benefit of section 931) for such period or such part thereof was derived from the active conduct of a trade or business within a possession of the United States. ... For a determination of income from sources within the United States, see part I (section 861 and following), subchapter N, chapter 1 of the Code, and section 931(i), and the regulations thereunder.

[ So, "Gross income means all income from whatever source...", BUT "In the case of a citizen of the United States... gross income means only gross income.. within the United States-- If 80 percent or more" of it comes from possessions. The term ``possession of the United States'' includes American Samoa, Guam, Johnston Island, Midway Islands, the Panama Canal Zone, Puerto Rico, and Wake Island. Apparently if you work enough in a possession you can claim all the income was gained from within the United States. According to the rules, this is the most desirable condition for a taxpayer needing to reduce taxable income. But, notice we are also pointed to Sec. 861, "the rules... for determining taxable income" in order to determine the sources of income. Don't be confused by individual Section titles, such as the title to Sec. 861, and pay little attention to what the titles say. USC Sec. 7806(b) shows that the individual titles of sections, i.e. descriptive matter relating to the contents, or table of contents, and cross references, outlines, etc. are only tools for the location of a subject. The laws (and rules) are only found on the inside of these labeled sections. ]

- "gross income": (1186 file(s) found)

26CFR1.861-8(a)(3)
...gross income ...is referred to as a ``class of gross income'' and may consist of one or more items of gross income enumerated in section 61, namely:
(i) Compensation for services, including fees, commissions, and similar items;
(ii) Gross income derived from business;
(iii) Gains derived from dealings in property;
(iv) Interest;
(v) Rents;
...(and more items)

26CFR1.861-8 (a)(4)
the term... ``statutory grouping'' means the gross income from a specific source or activity which must first be determined in order to arrive at ``taxable income'' (See paragraph (f)(1) of this section.)...
...the statutory grouping ...may include, or consist entirely of, excluded income. See paragraph (d)(2) of this section with respect to ...excluded income.

26CFR1.861-8(b)
...gross income to which a specific deduction is definitely related ...is referred to as a ``class of gross income'' and may consist of one or more items of gross income. The rules emphasize the factual relationship between the deduction and a class of gross income. See paragraph (d)(1) of this section which provides that in a taxable year there may be no item of gross income in a class or less gross income than deductions allocated to the class, and paragraph (d)(2) of this section which provides that a class of gross income may include excluded income.

- "gross income means": (6 file(s) found)

26CFR1.61-1
(a) General definition. Gross income means all income from whatever source derived, unless excluded by law.

[This is the rule, which is supposed to authorize a tax on "all income from whatever source." But, rule #1 says the "Tax imposed is upon taxable income", not "imposed upon gross income." This rule, Sec. 61-1, is not a part of "the rules... for determining taxable income." It is only a "General definition" of Gross. However, even it says "unless excluded", and immediately after this in Sec. 61-1(b), says if other sections of the Code provide specific treatment for "any item", the other sections shall apply, regardless of what Gross means here.]

[For some reason, this next result is not available on the eCFR, only the CFR.]

* The Treasury Dept. changed this section in Jan. 31, 2006. You can see the earlier version at http://www.access.gpo.gov/nara/cfr/cfr-table-search.html#page1

26CFR1.931-1
(b)General rule--(1) Qualifications. In the case of a citizen of the United States or a domestic corporation satisfying the following conditions, gross income means only gross income from sources within the United States--
(i) If 80 percent or more of the gross income of such citizen or domestic corporation (computed without the benefit of section 931) for the 3-year period immediately preceding the close of the taxable year (or for such part of such period immediately preceding the close of such taxable year as may be applicable) was derived from sources within a possession of the United States, and
(ii) If 50 percent or more of the gross income of such citizen or domestic corporation (computed without the benefit of section 931) for such period or such part thereof was derived from the active conduct of a trade or business within a possession of the United States. ... For a determination of income from sources within the United States, see part I (section 861 and following), subchapter N, chapter 1 of the Code, and section 931(i), and the regulations thereunder.

[ So, "Gross income means all income from whatever source, unless excluded by law", BUT "In the case of a citizen of the United States... gross income means only gross income... within the United States -- If 80 percent or more" of it comes from possessions. The term ``possession of the United States'' includes American Samoa, Guam, Johnston Island, Midway Islands, the Panama Canal Zone, Puerto Rico, and Wake Island. Apparently if you work enough in a possession you can claim all the income was gained from within the United States. According to the rules, this is the most desirable condition for a taxpayer needing to reduce taxable income. But, notice this rule points us to Sec. 861, "the rules... for determining taxable income" to determine the sources of income. Don't be confused by individual Section titles. USC Sec. 7806(b) shows that the individual titles of sections, i.e. descriptive matter relating to the contents, or table of contents, and cross references, outlines, etc. are only tools for the location of a subject. The laws (and rules) are only found on the inside of these labeled sections. ]

- "Computation of taxable income from sources within the United States": (3 file(s) found) - A Windows search will only show 1 result in 2004 edition, due editing by GPO. You can also use the e-cfr Simple Search at http://ecfr.gpoaccess.gov

26CFR1.861-8
Sec. 1.861-8 Computation of taxable income from sources within the United States and from other sources and activities.

(a) In general--(1) Scope. Sections 861(b) and 863(a) state in general terms how to determine taxable income of a taxpayer from sources within the United States after gross income from sources within the United States has been determined. Sections 862(b) and 863(a) state in general terms how to determine taxable income of a taxpayer from sources without the United States...
... See paragraph (f)(1) of this section for a list and description of operative sections.

26CFR1.861-8T
Sec. 1.861-8T Computation of taxable income from sources within the United States and from other sources and activities (temporary).

- "computation of taxable income": (37 file(s) found)

26cfr1.861-8
Sec. 1.861-8 Computation of taxable income from sources within the United States and from other sources and activities.

(a) In general--(1) Scope. Sections 861(b) and 863(a) state in general terms how to determine taxable income of a taxpayer from sources within the United States after gross income from sources within the United States has been determined. Sections 862(b) and 863(a) state in general terms how to determine taxable income ...
...The rules contained in this section apply in determining taxable income of the taxpayer from specific sources and activities under other sections of the Code, referred to in this section as operative sections. See paragraph (f)(1) of this section for a list and description of operative sections.

(a)(4) ...In some instances, where the operative section so requires, the statutory grouping or the residual grouping may include, or consist entirely of, excluded income. See paragraph (d)(2) of this section with respect to the allocation and apportionment of deductions to excluded income.

- "computation of income": (12 file(s) found)

26cfr1.861-1
(c) Computation of income. If a taxpayer has gross income from sources within or without the United States, together with gross income derived partly from sources within and partly from sources without the United States, the amounts thereof, together with the expenses and investment applicable thereto, shall be segregated; and the taxable income from sources within the United States shall be separately computed therefrom.

- "categories of income": (17 file(s) found)

26cfr1.861-1
(a) Categories of income. Part I (section 861 and following), subchapter N, chapter 1 of the Code, and the regulations thereunder determine the sources of income for purposes of the income tax. These sections explicitly allocate certain important sources of income to the United States or to areas outside the United States, as the case may be; and, with respect to the remaining income (particularly that derived partly from sources within and partly from sources without the United States), authorize the Secretary or his delegate to determine the income derived from sources within the United States, either by rules of separate allocation or by processes or formulas of general apportionment. The statute provides for the following three categories of income:
(1) Within the United States.
(2) Without the United States.
(3) Partly within and partly without the United States.

- "taxable income from sources within the United States": (8 file(s) found in 2003)
- Only 6 files found in 2004. Sec. 861-8 and 861-8T will no longer show up using a Windows text search.

26CFR1.863-1
(c) Determination of taxable income. The taxpayer's taxable income from sources within or without the United States will be determined under the rules of Secs. 1.861-8 through 1.861-14T for determining taxable income from sources within the United States."

26CFR1.861-1
(b) Taxable income from sources within the United States. The taxable income from sources within the United States shall consist of the taxable income described in paragraph (a)(1) of this section plus the taxable income allocated or apportioned to such sources, as indicated in paragraph (a)(3) of this section.

26CFR1.861-8
Sec. 1.861-8 Computation of taxable income from sources within the United States and from other sources and activities.

(a) In general--(1) Scope. Sections 861(b) and 863(a) state in general terms how to determine taxable income of a taxpayer from sources within the United States after gross income from sources within the United States has been determined.

26CFR1.861-8T
Sec. 1.861-8T Computation of taxable income from sources within the United States and from other sources and activities (temporary).

- "determine income": (6 file(s) found)

26CFR1.863-0
Sec. 1.863-0 Table of contents.
This section lists captions contained in Secs. 1.863-1, 1.863-2, and 1.863-3.

Sec. 1.863-3 Allocation and apportionment of income from certain sales of inventory.
(a) In general.
(1) Scope.
(2) Special rules.
(b) Methods to determine income attributable to production activity and sales activity.

26CFR1.863-3
(b) Methods to determine income attributable to production activity and sales activity--(1) 50/50 method--(i) Determination of gross income. Generally, gross income from Section 863 Sales will be apportioned between production activity and sales activity under the 50/50 method as described in this paragraph (b)(1). Under the 50/50 method, one-half of the taxpayer's gross income will be considered income attributable to production activity and the source of that income will be determined under the rules of paragraph (c)(1) of this section. The remaining one- half of such gross income will be considered income attributable to sales activity and the source of that income will be determined under the rules of paragraph (c)(2) of this section. In lieu of the 50/50 method, the taxpayer may elect to determine the source of income from Section 863 Sales under the IFP method described in paragraph (b)(2) of this section or, with the consent of the District Director, the books and records method described in paragraph (b)(3) of this section.

26CFR1.863-3 (c)(1)
(c) Determination of the source of gross income from production activity and sales activity--(1) Income attributable to production activity--(i) Production only within the United States or only within foreign countries--(A) Source of income. For purposes of this section, production activity means an activity that creates, fabricates, manufactures, extracts, processes, cures, or ages inventory. See Sec. 1.864-1. Subject to the provisions in Sec. 1.1502-13 or paragraph (g)(2)(ii) of this section, the only production activities that are taken into account for purposes of Secs. 1.863-1, 1.863-2, and this section are those conducted directly by the taxpayer. Wherethe taxpayer's production assets are located only within the United States or only outside the United States, the income attributable to production activity is sourced where the taxpayer's production assets are located. For rules regarding the source of income when production assets are located both within the United States and without the United States, see paragraph (c)(1)(ii) of this section.

26CFR1.863-3(c)(2) and (d), and(e).

(c)(2) Income attributable to sales activity. The source of the taxpayer's income that is attributable to sales activity will be determined under the provisions of Sec. 1.861-7(c). However, notwithstanding any other provision, for purposes of section 863, the place of sale will be presumed to be the United States if personal property is wholly produced in the United States and the property is sold for use, consumption, or disposition in the United States...

(d) Determination of source of taxable income. Once the source of gross income has been determined under paragraph (c) of this section, the taxpayer must properly allocate and apportion separately under Secs. 1.861-8 through 1.861-14T the amounts of its expenses, losses, and other deductions to its respective amounts of gross income from Section 863 Sales determined separately under each method described in paragraph (b) of this section.
... In the case of gross income from Section 863 Sales determined under the IFP method or the books and records method, the rules of Secs. 1.861-8 through 1.861-14T must apply to properly allocate or apportion amounts of expenses, losses and other deductions allocated and apportioned to such gross income between gross income from sources within and without the United States.

(e) Election and reporting rules--(1) Elections under paragraph (b) of this section. If a taxpayer does not elect a method specified in paragraph (b) (2) or (3) of this section, the taxpayer must apply the method specified in paragraph (b)(1) of this section. The taxpayer may elect to apply the method specified in paragraph (b)(2) of this section by using the method on a timely filed original return (including extensions). A taxpayer may elect to apply the method specified in paragraph (b)(3) of this section by using the method on a timely filed original return (including extensions), but only if the taxpayer has received permission from the District Director to apply that method. Once a method under paragraph (b) of this section has been used, that method must be used in later taxable years unless the Commissioner consents to a change.

- "scope" and "taxable income": (111 file(s) found)

[WinMerge, or a similar directory-compare tool is required to find files containing multiple terms. See How to Search.

What do the rules encompass?

Scope:

1. Who = "the taxpayer"
2. Where = "under other sections of the Code"
3. What = "determining taxable income of the taxpayer", and "specific guidance", AND "how to determine taxable income"

Notice:

• "specific guidance" occurs only once
• "determining taxable income of the taxpayer" and "how to determine taxable income" also only occur once
• they all occur together on just one page in the Code of Federal Regulations, Title 26.

26cfr1.861-8
Sec. 1.861-8 Computation of taxable income...

(a) In general--(1) Scope. Sections 861(b) and 863(a) state in general terms how to determine taxable income of a taxpayer from sources within the United States after gross income from sources within the United States has been determined. ... This section provides specific guidance ...by prescribing rules for the allocation... of... other deductions (referred to collectively... as ``deductions'') of the taxpayer. The rules contained in this section apply in determining taxable income of the taxpayer from specific sources and activities under other sections of the Code, referred to in this section as operative sections. See paragraph (f)(1) of this section for a list and description of operative sections.

[The "Scope" includes the "taxable income of the taxpayer... under other Sections of the Code." Then it says we must "See paragraph (f)(1)... for a list" of sources, and sections where they are located. These are the specific sources and sections in the CFR, which require the determination of taxable income; shown both by the Scope of this rule, and as specifically stated within the rule of Paragraph (f)(1). However, this is only the statutory grouping. There is also a residual grouping which is considered taxable, unless excluded (exempt). By following instructions in 861-8, titled "Computation of taxable income...", that tell us "how to determine taxable income," while giving us "specifice guidance," we eventually come to Sec. 861-8T(d)(2)(iii), the exact list of what is taxed. If you sell inventory, you may want to read the Scope of the rule below. But, again we are directed to Sec. 861-8.]

26CFR1.863-3
(a) In general--(1) Scope. Paragraphs (a) through (e) of this section apply to determine the source of income derived from the sale of inventory property (inventory)... A taxpayer must divide gross income between production activity and sales activity... The source of gross income... must then be determined under paragraph (c) of this section. Taxable income... is determined under paragraph (d) of this section.

(c) (1) Income attributable to production activity--(i)(A) Source of income.
...production activity means an activity that creates ...inventory...
Where the taxpayer's production assets are located only within the United States or only outside the United States, the income attributable to production activity is sourced where the taxpayer's production assets are located...

(d) Determination of source of taxable income. Once the source of gross income has been determined under paragraph (c) of this section, the taxpayer must properly allocate and apportion separately under Secs. 1.861-8 through 1.861-14T the amounts of its expenses, losses, and other deductions to its respective amounts of gross income...

- "determine taxable income": (6 file(s) found)

26CFR1.861-8
Sec. 1.861-8 Computation of taxable income from sources within the United States and from other sources and activities.
(a) In general--(1) Scope. Sections 861(b) and 863(a) state in general terms how to determine taxable income of a taxpayer from sources within the United States after gross income from sources within the United States has been determined. Sections 862(b) and 863(a) state in general terms how to determine taxable income of a taxpayer from sources without the United States after gross income from sources without the United States has been determined. This section provides specific guidance for applying the cited Code sections by prescribing rules for the allocation and apportionment of expenses, losses, and other deductions (referred to collectively in this section as ``deductions'') of the taxpayer. The rules contained in this section apply in determining taxable income of the taxpayer from specific sources and activities under other sections of the Code, referred to in this section as operative sections. See paragraph (f)(1) of this section for a list and description of operative sections.

[ Be aware that only one section in the whole Title 26 Code of Federal Regulations tells the user all of the following, which is all the pieces of information required to find our taxable income:
1. The Scope of the rule (what it covers); like who, where, what, when. 
2. "how to determine taxable income"
3. "provides specific guidance... by prescribing rules for... deductions"
4. "The rules contained in this section apply in determining taxable income of the taxpayer from specific sources... under other sections of the Code" (which is really the scope - all other sections of the Code).
5. "See paragraph (f)(1)... for a list" (...of specific sources). So, not all of the sections, or the sources, are required, instead we are given a handy list of specific sources as it should be, and not just left with "whatever source". Afterall, it's "whatever source... unless excluded", and that's not enough information to make a determination. There has to be a specific list somewhere, and there is, but two of them. Paragraph (f)(1) - the list of specific sources and activities, and...
6. Paragraph (d)(2) - which points to the list of items. The only list of the exact items of income that are taxable and are not considered excluded.

Observe that Sec. 861 is the only section giving "specific guidance" for "specific sources... under [all] other sections of the Code." We can say all because it is easily verified with a computer and using a simple form of text data mining. ]

- "determination of taxable income": (28 file(s) found)

26cfr1.863-1 (c)
Determination of taxable income. The taxpayer's taxable income from sources within or without the United States will be determined under the rules of Secs. 1.861-8 through 1.861-14T for determining taxable income from sources within the United States.

26cfr1.861-8 (f)
Miscellaneous matters--(1) Operative sections. The operative sections of the Code which require the determination of taxable income of the taxpayer from specific sources or activities and which give rise to statutory groupings to which this section is applicable include the sections described below.

26cfr1.863-2 (a)
Determination of taxable income. Section 863(b) provides an alternate method for determining taxable income from sources within the United States in the case of gross income derived from sources partly within and partly without the United States. Under this method, taxable income is determined by deducting from such gross income the expenses, losses, or other deductions properly apportioned or allocated thereto and a ratable part of any other expenses, losses, or deductions that cannot definitely be allocated to some item or class of gross income. The income to which this section applies (and that is treated as derived partly from sources within and partly from sources without the United States) will consist of gains, profits, and income...

- "determination of source of taxable income": (3 file(s) found)

26CFR1.863-0
Table of Contents
Sec. 1.863-2 (b) Determination of source of taxable income.
Sec. 1.863-3 (d) Determination of source of taxable income.

26CFR1.863-2 (b)
Determination of source of taxable income. Income treated as derived from sources partly within and partly without the United States under paragraph (a) of this section may be allocated to sources within and without the United States pursuant to Sec. 1.863-1 or apportioned to such sources in accordance with the methods described in other regulations under section 863. To determine the source of certain types of income described in paragraph (a)(1) of this section, see Sec. 1.863- 4. To determine the source of gross income described in paragraph (a)(2) of this section, see Sec. 1.863-1 for natural resources and see Sec. 1.863-3 for other inventory. Taxpayers, at their election, may apply the principles of Sec. 1.863-3 (b)(1) and (c) to determine the source of taxable income (rather than gross income) from sales of inventory property (other than natural resources). To determine the source of income partly from sources within a possession of the United States, including income described in paragraph (a)(3) of this section, see Sec. 1.863-3(f).

26CFR1.863-3 (d)
Determination of source of taxable income. Once the source of gross income has been determined under paragraph (c) of this section, the taxpayer must properly allocate and apportion separately under Secs. 1.861-8 through 1.861-14T the amounts of its expenses, losses, and other deductions to its respective amounts of gross income...

- "determining taxable income": (27 file(s) found, 2003 edition) -29 files in 2004 edition.

26CFR1.861-8 (a)
In general--(1) Scope... ...The rules contained in this section apply in determining taxable income of the taxpayer from specific sources and activities under other sections of the Code, referred to in this section as operative sections. See paragraph (f)(1) of this section for a list and description of operative sections.

26CFR1.861-8 (f)(3)(ii)
Relationship of sections 861, 862, 863(a), and 863(b). Sections 861, 862, 863(a), and 863(b) are the four provisions applicable in determining taxable income from specific sources. Each of these four provisions applies independently.

26CFR1.863-2 (a)
Determination of taxable income. Section 863(b) provides an alternate method for determining taxable income...

[ Again we are directed to paragraph (f)(1), which is the list of sources and "sections of the Code which require the determination of taxable income". Another important point to notice here is that Sec. 861-8 (f)(3)(ii) shows "Each of these four provisions applies independently." So, we don't have to gain income from both domestic and foreign sources in order to use these rules. Section 861 applies independently.]

- "operative section": (3 file(s) found)

Sec. 1.861-8
Computation of taxable income from sources within the United States and from other sources and activities.
(a)(1) The rules contained in this section apply in determining taxable income of the taxpayer from specific sources and activities under other sections of the Code, referred to in this section as operative sections. See paragraph (f)(1) of this section for a list and description of operative sections.

(a)(2) Allocation and apportionment of deductions in general. A taxpayer to which this section applies is required to allocate deductions to a class of gross income and, then, if necessary to make the determination required by the operative section of the Code, to apportion deductions within the class of gross income between the statutory grouping of gross income...

(a)(4) Statutory grouping of gross income and residual grouping of gross income. For purposes of this section, the term ``statutory grouping of gross income'' or ``statutory grouping'' means the gross income from a specific source or activity which must first be determined in order to arrive at ``taxable income'' from which specific source or activity under an operative section. (See paragraph (f)(1) of this section.)...

...In some instances, where the operative section so requires, the statutory grouping or the residual grouping may include, or consist entirely of, excluded income. See paragraph (d)(2) of this section with respect to the allocation and apportionment of deductions to excluded income.

(d)(1) ...If there is no gross income in a statutory grouping or the amount of deductions allocated and apportioned to a statutory grouping exceeds the amount of gross income in the statutory grouping, the effects are determined under the operative section...

[ Note: 26 CFR 1.861-8(f)(1) lists the "operative sections" which require the determination of taxable income]

26 CFR 1.861-8(f)(1)
Miscellaneous matters--(1) Operative sections . The operative sections of the Code which require the determination of taxable incomeof the taxpayer from specific sources or activities and which give rise to statutory groupings to which this section is applicable include the sections described below.
(i) Overall limitation to the foreign tax credit.
...the statutory grouping is foreign source income...
(ii) [Reserved]
(iii) DISC and FSC taxable income.
(iv) Effectively connected taxable income. Nonresident alien individuals and foreign corporations engaged in trade or business within the United States
(v) Foreign base company income.
(vi) Other operative sections. The rules provided in this section also apply in determining
(and more foreign source income)

- "sources": (525 file(s) found)

[Ammendment - Shows which wording was substituted and when it was substituted.]

26 USC Sec. 301 -MISC1- AMENDMENTS
1966 - Subsec. (b)(1)(B)(ii). Pub. L. 89-570 included reference
to section 617(d)(1).
Subsec. (b)(1)(C). Pub. L. 89-809 substituted ''gross income which is effectively connected with the conduct of a trade or business within the United States'' for ''gross income from sources within the United States'' in cl. (i), ''gross income which is not effectively connected with the conduct of a trade or business within the United States'' for ''gross income from sources without the United States''...

- "determine the source": (5 file(s) found)

26CFR1.861-1
(a) Categories of income. Part I (section 861 and following), subchapter N, chapter 1 of the Code, and the regulations thereunder determine the sources of income for purposes of the income tax.

Sec. 1.864-8T
(a) Applicability--(1) General rule. This section applies for purposes of determining the treatment of income derived by a person from a trade or service...
...any income (including any stated interest, discount or service fee) derived from the trade or service receivable shall be treated as if it were interest received on a loan...The principles of sections 861 through 863 and the regulations thereunder shall be applied to determine the source of such interest income...

- "source of income": (35 file(s) found)

26CFR301.7654-1
(c)(3) Source rules. The determination of the source of income shall be based on the principles contained in sections 861 through 863, and the regulations thereunder...

26CFR1.1441-1
(c) Definitions--
(9) Source of income. The source of income is determined under the provisions of part I (section 861 and following) , subchapter N, chapter 1 of the Code and the regulations under those provisions.

- "list of exemptions": (3 file(s) found)

26cfr1.1441-1(b)(2)(vii)(D) (4) List of exemptions from...

(iii) Bank deposit interest (including original issue discount) described in section 861(a)(1)(B) is exempt ...

- "allocating expenses": (2 file(s) found, 4 files on GPO beta search)

26cfr1.904-6 Allocation and apportionment of taxes
(a)(1)(ii) If the taxpayer applies the principles of Sections 1.861-8 through 1.861-14T for purposes of allocating expenses... such principles shall be applied in the same manner as the taxpayer applies such principles in determining the income... for United States tax purposes"

- "income derived from": (152 file(s) found)

[ Notice that Gross Income is one thing, and Taxable Income is another. Remember, "the tax imposed is upon taxable income", so pay attention to the rules for Taxable income. Gross income requirements are much more demanding than Taxable income requirements. Everyone has gross income, but very few have taxable income. Following the references we are told to "See" eventually leads to the exact list of taxable items, which is written only once in the entire 26 CFR (as it should be) and is found in 26CFR1.861-8T(d)(2)(iii) ]

26CFR1.861-1 Income from sources within the United States.
(a) Categories of income. Part I (section 861 and following), subchapter N, chapter 1 of the Code, and the regulations thereunder determine the sources of income for purposes of the income tax. These sections explicitly allocate certain important sources of income to the United States or to areas outside the United States, as the case may be; and, with respect to the remaining income (particularly that derived partly from sources within and partly from sources without the United States), authorize the Secretary or his delegate to determine the income derived from sources within the United States, either by rules of separate allocation or by processes or formulas of general apportionment. The statute provides for the following three categories of income:
    (1) Within the United States. The gross income from sources within the United States, consisting of the items of gross income specified in section 861(a) plus the items of gross income allocated or apportioned to such sources in accordance with section 863(a). See Sec. Sec. 1.861- 2 to 1.861-7, inclusive, and Sec. 1.863-1. The taxable income from sources within the United States, in the case of such income, shall be determined by deducting therefrom, in accordance with sections 861(b) and 863(a), the expenses, losses, and other deductions properly apportioned or allocated thereto and a ratable part of any other expenses, losses, or deductions which cannot definitely be allocated to some item or class of gross income. See Sec. Sec. 1.861-8 and 1.863-1.
    (2) Without the United States. The gross income from sources without the United States, consisting of the items of gross income specified in section 862(a) plus the items of gross income allocated or apportioned to such sources in accordance with section 863(a). See Sec. Sec. 1.862- 1 and 1.863-1. The taxable income from sources without the United States, in the case of such income, shall be determined by deducting therefrom, in accordance with sections 862(b) and 863(a), the expenses, losses, and other deductions properly apportioned or allocated thereto and a ratable part of any other expenses, losses, or deductions which cannot definitely be allocated to some item or class of gross income. See Sec. Sec. 1.862-1 and 1.863-1.
    (3) Partly within and partly without the United States. The gross income derived from sources partly within and partly without the United States, consisting of the items specified in section 863(b) (1), (2), and (3). The taxable income allocated or apportioned to sources within the United States, in the case of such income, shall be determined in accordance with section 863 (a) or (b). See Sec. Sec. 1.863-2 to 1.863- 5, inclusive.

[ Next we see that determining the source of income is taken into consideration when selling our wares. Obviously, Sec. 861 has the rules for determining taxable income and the source. ]

26CFR1.861-7 Sale of personal property.
(a) General. Gains, profits, and income derived from the purchase and sale of personal property shall be treated as derived entirely from the country in which the property is sold.

26CFR1.861-18(f)(1)
Income derived from the licensing of a copyright right will be sourced under section 861(a)(4) or 862(a)(4), as appropriate.

26CFR1.861-18(f)(2)
Income derived from the leasing of a copyrighted article will be sourced under section 861(a)(4) or section 862(a)(4), as appropriate.

- "how to": (38 file(s) found)

26CFR1.861-8
Sec. 1.861-8 Computation of taxable income from sources within the United States and from other sources and activities.
(a) In general--(1) Scope. Sections 861(b) and 863(a) state in general terms how to determine taxable income of a taxpayer from sources within the United States after gross income from sources within the United States has been determined. Sections 862(b) and 863(a) state in general terms how to determine taxable income of a taxpayer from sources without the United States after gross income from sources without the United States has been determined. This section provides specific guidance for applying the cited Code sections by prescribing rules for the allocation and apportionment of expenses, losses, and other deductions (referred to collectively in this section as ``deductions'') of the taxpayer. The rules contained in this section apply in determining taxable income of the taxpayer from specific sources and activities under other sections of the Code, referred to in this section as operative sections. See paragraph (f)(1) of this section for a list and description of operative sections.

(d)(2) Allocation and apportionment to exempt, excluded, or eliminated income. ...see Sec. 1.861-8T(d)(2).

[ If we see paragraph (f)(1), and Sec. 861-8T(d)(2) as directed, they show the income of most Americans is exempt; completely excluding our income from the list of "Sections... which require the determination of taxable income", and the list of "Income that is not considered tax exempt" (i.e. "Income That Is Taxable"). Use your computer to verify search results. ]

- "items" and "excluded income": (3 file(s) found)

26CFR1.861-8
Sec. 1.861-8 Computation of taxable income from sources within the United States and from other sources and activities.
(a) In general--(1) Scope. Sections 861(b) and 863(a) state in general terms how to determine taxable income of a taxpayer from sources within the United States after gross income from sources within the United States has been determined. Sections 862(b) and 863(a) state in general terms how to determine taxable income of a taxpayer from sources without the United States after gross income from sources without the United States has been determined. This section provides specific guidance for applying the cited Code sections by prescribing rules for the allocation and apportionment of expenses, losses, and other deductions (referred to collectively in this section as ``deductions'') of the taxpayer. The rules contained in this section apply in determining taxable income of the taxpayer from specific sources and activities under other sections of the Code, referred to in this section as operative sections. See paragraph (f)(1) of this section for a list and description of operative sections.

(a)(3) ... may consist of one or more items (or subdivisions of these items) of gross income enumerated in section 61, namely: (i) Compensation for services, including fees, commissions, and similar items; ...

(a)(4) ... may include, or consist entirely of, excluded income. See paragraph (d)(2)...

(b) Allocation--(1) ... the gross income to which a specific deduction is definitely related is referred to as a ``class of gross income'' and may consist of one or more items of gross income. ...See paragraph (d)(2) of this section which provides that a class of gross income may include excluded income.

(d)(2) Allocation and apportionment to exempt, excluded, or eliminated income. ...see Sec. 1.861-8T(d)(2).

26CFR1.861-8T(d)(2)
(iii) Income that is not considered tax exempt. The following items are not considered to be exempt, eliminated, or excluded income and, thus, may have expenses, losses, or other deductions allocated and apportioned to them: [lists A, B, C, and D]

[ If we see paragraph (f)(1), and Sec. 861-8T(d)(2) as directed, they show the income of most Americans is exempt; completely excluding our income from the list of "Sections... which require the determination of taxable income", and the list of "Income that is not considered tax exempt" [i.e. "Income That Is Taxable"]. Use your computer to verify search results. ]

- "sources" and "excluded income": (5 file(s) found)

26CFR1.861-8
Sec. 1.861-8 Computation of taxable income from sources within the United States and from other sources and activities.
(a) In general--(1) Scope. Sections 861(b) and 863(a) state in general terms how to determine taxable income of a taxpayer from sources within the United States after gross income from sources within the United States has been determined. Sections 862(b) and 863(a) state in general terms how to determine taxable income of a taxpayer from sources without the United States after gross income from sources without the United States has been determined. This section provides specific guidance for applying the cited Code sections by prescribing rules for the allocation and apportionment of expenses, losses, and other deductions (referred to collectively in this section as ``deductions'') of the taxpayer. The rules contained in this section apply in determining taxable income of the taxpayer from specific sources and activities under other sections of the Code, referred to in this section as operative sections. See paragraph (f)(1) of this section for a list and description of operative sections.

(a)(4) ... may include, or consist entirely of, excluded income. See paragraph (d)(2)...

(b) Allocation--(1) ... the gross income to which a specific deduction is definitely related is referred to as a ``class of gross income'' and may consist of one or more items of gross income. ...See paragraph (d)(2) of this section which provides that a class of gross income may include excluded income.

(d)(2) Allocation and apportionment to exempt, excluded, or eliminated income. ...see Sec. 1.861-8T(d)(2).

[ If we see paragraph (f)(1), and Sec. 861-8T(d)(2) as directed, they show the income of most Americans is exempt; completely excluding our income from the list of "Sections... which require the determination of taxable income", and the list of "Income that is not considered tax exempt" [i.e. "Income That Is Taxable"]. Use your computer to verify search results. ]

- "sections" and "excluded income": (5 file(s) found)

26CFR1.861-8
Sec. 1.861-8 Computation of taxable income from sources within the United States and from other sources and activities.
(a) In general--(1) Scope. sections 861(b) and 863(a) state in general terms how to determine taxable income of a taxpayer from sources within the United States after gross income from sources within the United States has been determined. sections 862(b) and 863(a) state in general terms how to determine taxable income of a taxpayer from sources without the United States after gross income from sources without the United States has been determined. This section provides specific guidance for applying the cited Code sections by prescribing rules for the allocation and apportionment of expenses, losses, and other deductions (referred to collectively in this section as ``deductions'') of the taxpayer. The rules contained in this section apply in determining taxable income of the taxpayer from specific sources and activities under other sections of the Code, referred to in this section as operative sections. See paragraph (f)(1) of this section for a list and description of operative sections.

(a)(4) ... may include, or consist entirely of, excluded income. See paragraph (d)(2)...

(b) Allocation--(1) ... the gross income to which a specific deduction is definitely related is referred to as a ``class of gross income'' and may consist of one or more items of gross income. ...See paragraph (d)(2) of this section which provides that a class of gross income may include excluded income.

(d)(2) Allocation and apportionment to exempt, excluded, or eliminated income. ...see Sec. 1.861-8T(d)(2).

[ If we see paragraph (f)(1), and Sec. 861-8T(d)(2) as directed, they show the income of most Americans is exempt; completely excluding our income from the list of "Sections... which require the determination of taxable income", and the list of "Income that is not considered tax exempt" [i.e. "Income That Is Taxable"]. Use your computer to verify search results. ]

- "applying" and "rules" and "determining taxable income": (9 file(s) found)

[ If we