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Form 8233 for Tampa Florida: What You Should Know
DETERMINING THE BASIS FOR INCLUSION OF NONRESIDENT ALIEN ELIGIBLE FOR EXEMPTION FROM WITHHOLDING The base for the determination of the basis for inclusion of a nonresident alien with respect to income, gain, loss, deduction and credit is generally the amount of the nonresident alien's includible income, gain, loss, deduction, or credit with respect to the same activities performed within the United States. Examples of activities to include in the basis of a nonresident alien include, for example, farming, fishing, forestry, ranching, banking and other businesses other than small business activities, or work performed by the nonresident alien as a government employee, such as on a Federal ship or aircraft. Examples of activities to not include in the basis of a nonresident alien include, for example, performing personal services outside the United States for a corporation, partnership, or trust, receiving a transfer of property at least 50% of the fair market value from a corporation, partnership or trust. Nonresident aliens, except those described in the previous list, are not required to include the income, gain, loss, deduction, credit, or other amount that is exempt from withholding on compensation if included in the calculation of the tax liability under the provision under which the payee is identified (Section 1401(a)(31) of the Code) or in the determination of eligibility under Subpart N of Chapter 1 of Part II of the Code. Nonresident aliens who meet the requirements of subpart J of the Code can exclude nonqualified business income from gross income or from gross income for Federal income tax purposes, provided that such income does not, by reason of its nature, fail to be ordinary income that is not subject to any of the withholding requirements of subpart A of the Code. For an example of an income that is includible in the nonqualified business income of a nonresident alien, refer to the instructions for Form 1120-A, Nonqualified Business Income. See Notice 2001-33, 2001-5 I.R.B. 602, for information concerning the treatment of payees for reporting of taxable compensation by nonresidents. Nonresident aliens who are not noncitizens are still subject to certain provisions of the Code, such as the withholding requirements in § 1.
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