26 CFR 1.931-1 - Exclusion of certain income from sources within Guam, American Samoa, or the Northern Mariana Islands.

Status message

There are 9 Updates appearing in the Federal Register for 26 CFR 1. View below or at eCFR (GPOAccess)
prev | next
§ 1.931-1 Exclusion of certain income from sources within Guam, American Samoa, or the Northern Mariana Islands.
(a) General rule.
(1) An individual (whether a United States citizen or an alien), who is a bona fide resident of a section 931 possession during the entire taxable year, will exclude from gross income the income derived from sources within any section 931 possession and the income effectively connected with the conduct of a trade or business by such individual within any section 931 possession, except amounts received for services performed as an employee of the United States or any agency thereof. For purposes of section 931(d) and this section, an employee of the government of a section 931 possession will not be considered an employee of the United States or of an agency of the United States.
(2) The following example illustrates the application of the general rule in paragraph (a)(1) of this section:
Example.
D, a United States citizen, files returns on a calendar year basis. In April 2008, D moves to American Samoa, where he purchases a house and accepts a permanent position with a local employer. For the remainder of the year and for the following three taxable years, D continues to live and work in American Samoa and has a closer connection to American Samoa than to the United States or any foreign country. Assuming that D otherwise meets the requirements under section 937(a) and § 1.937-1(b) and (f)(1) (year-of-move exception), D is considered a bona fide resident of American Samoa for 2008. Accordingly, under section 931 and paragraph (a)(1) of this section, D should exclude from his 2008 Federal gross income any income from sources within American Samoa and any income that is effectively connected with the conduct of a trade or business within American Samoa, as determined under section 937(b) and §§ 1.937-2 and 1.937-3, as applicable.
(b) Deductions and credits. In any case in which any amount otherwise constituting gross income is excluded from gross income under the provisions of section 931, there will not be allowed as a deduction from gross income any items of expenses or losses or other deductions (except the deduction under section 151, relating to personal exemptions), or any credit, properly allocable to, or chargeable against, the amounts so excluded from gross income. For purposes of the preceding sentence, the rules of § 1.861-8 will apply (with creditable expenditures treated in the same manner as deductible expenditures).
(c) Definitions. For purposes of this section—
(1) The term section 931 possession means a possession that is a specified possession and that has entered into an implementing agreement, as described in section 1271(b) of the Tax Reform Act of 1986, Public Law 99-514 (100 Stat. 2085), with the United States that is in effect for the entire taxable year;
(2) The term specified possession means Guam, American Samoa, or the Northern Mariana Islands;
(3) The rules of § 1.937-1 will apply for determining whether an individual is a bona fide resident of a section 931 possession;
(4) The rules of § 1.937-2 will apply for determining whether income is from sources within a section 931 possession; and
(5) The rules of § 1.937-3 will apply for determining whether income is effectively connected with the conduct of a trade or business within a section 931 possession.
(d) Effective/applicability date. This section applies to taxable years ending after April 9, 2008.
[T.D. 9391, 73 FR 19360, Apr. 9, 2008]

Title 26 published on 2014-04-01

The following are only the Rules published in the Federal Register after the published date of Title 26.

For a complete list of all Rules, Proposed Rules, and Notices view the Rulemaking tab.

  • 2014-06-03; vol. 79 # 106 - Tuesday, June 3, 2014
    1. 79 FR 31863 - Alternative Simplified Credit Election
      GPO FDSys XML | Text
      DEPARTMENT OF THE TREASURY, Internal Revenue Service
      Final and temporary regulations.
      Effective Date: These regulations are effective on June 3, 2014. Applicability Date: For dates of applicability, see § 1.41-9T(d).
      26 CFR Part 1

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.


United States Code
USC: Title 26a
U.S. Code: Title 29 - LABOR
Statutes at Large
Public Laws
Presidential Documents

Reorganization ... 1978 Plan No. 4

Title 26 published on 2014-04-01

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 26 CFR 1 after this date.

  • 2014-06-03; vol. 79 # 106 - Tuesday, June 3, 2014
    1. 79 FR 31863 - Alternative Simplified Credit Election
      GPO FDSys XML | Text
      DEPARTMENT OF THE TREASURY, Internal Revenue Service
      Final and temporary regulations.
      Effective Date: These regulations are effective on June 3, 2014. Applicability Date: For dates of applicability, see § 1.41-9T(d).
      26 CFR Part 1