Aurora Duque Balino - Page 9

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          paid those expenses.  Those expenses, however, do not constitute            
          other miscellaneous deductions and in fact are medical expenses,            
          as respondent argues.                                                       
               Section 873(a) provides generally that, in the case of a               
          nonresident alien, deductions are allowed only if, and to the               
          extent that, such expenses are connected with income that is                
          effectively connected with the conduct of a trade or business               
          within the United States with the apportionment and allocation of           
          the allowable deductions as provided by regulations.                        
          Additionally, section 873(b) provides exceptions to the general             
          rule of section 873(a) and allows deductions for certain expenses           
          that are not effectively connected with a trade or business                 
          within the United States.  The allowable deductions are:  (1)               
          Casualty and theft losses under section 165, (2) charitable                 
          contributions under section 170, and (3) personal exemptions                
          under section 151.  Medical and dental expenses incurred by a               
          nonresident alien are not included as an exception to the general           
          rule.  That is why, therefore, Schedule A for Form 1040NR does              
          not provide for deduction of medical and dental expenses.  The              
          job expenses and most other miscellaneous deductions, although              
          not specified as being deductible under section 873(b), are,                
          nonetheless, deductible under section 873(a) because such                   
          expenses are effectively connected with the conduct of a trade or           
          business within the United States.  Therefore, with respect to              






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