Rilwan Adisa Salami - Page 7

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               We hold that petitioner is not entitled to business expense            
          deductions in excess of the amounts allowed by respondent.                  
               The third issue for decision is whether petitioner's net               
          earnings from self-employment are excludable from self-employment           
          income because he was a nonresident alien.                                  
               Section 1401(a) imposes a tax on self-employment income for            
          old-age, survivors, and disability insurance.  An additional tax            
          for hospital insurance is imposed on self-employment income                 
          pursuant to section 1401(b).  Self-employment income is defined             
          as the net earnings from self-employment derived by an                      
          individual, other than a nonresident alien individual, during any           
          taxable year.  Sec. 1402(b).  The phrase "net earnings from self-           
          employment" is in turn defined as gross income derived by an                
          individual from any trade or business carried on by such                    
          individual, less any attributable deductions.  Sec. 1402(a).                
               Petitioner argues that he is not liable for the section                
          1401(a) and (b) taxes on self-employment income because he was a            
          nonresident alien during 1992 and 1993.                                     
               A nonresident alien never has self-employment income.  Sec.            
          1.1402(b)-1(d), Income Tax Regs.  While a nonresident alien who             
          derives income from a trade or business carried on within the               
          United States may be subject to the applicable income tax                   
          provisions on such income, such nonresident alien will not be               
          subject to the taxes on self-employment income, since any                   

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