Exempt individual defined

For purposes of this subsection—

(A) In general An individual is an exempt individual for any day if, for such day, such individual is— (i) a foreign government-related individual, (ii) a teacher or trainee, (iii) a student, or (iv) a professional athlete who is temporarily in the United States to compete in a sports event— (I) which is organized for the primary purpose of benefiting an organization which is described in section 501(c)(3) and exempt from tax under section 501(a), (II) all of the net proceeds of which are contributed to such organization, and, 2 2 So in original. The comma probably should not appear. (III) which utilizes volunteers for substantially all of the work performed in carrying out such event.

(B) Foreign government-related individual The term “foreign government-related individual” means any individual temporarily present in the United States by reason of— (i) diplomatic status, or a visa which the Secretary (after consultation with the Secretary of State) determines represents full-time diplomatic or consular status for purposes of this subsection, (ii) being a full-time employee of an international organization, or (iii) being a member of the immediate family of an individual described in clause (i) or (ii).

(C) Teacher or trainee The term “teacher or trainee” means any individual— (i) who is temporarily present in the United States under subparagraph (J) or (Q) of section 101(15) of the Immigration and Nationality Act (other than as a student), and (ii) who substantially complies with the requirements for being so present.

(D) Student The term “student” means any individual— (i) who is temporarily present in the United States— (I) under subparagraph (F) or (M) of section 101(15) of the Immigration and Nationality Act, or (II) as a student under subparagraph (J) or (Q) of such section 101(15), and (ii) who substantially complies with the requirements for being so present.

(E) Special rules for teachers, trainees, and students (i) Limitation on teachers and trainees An individual shall not be treated as an exempt individual by reason of clause (ii) of subparagraph (A) for the current year if, for any 2 calendar years during the preceding 6 calendar years, such person was an exempt person under clause (ii) or (iii) of subparagraph (A). In the case of an individual all of whose compensation is described in section 872(b)(3), the preceding sentence shall be applied by substituting “4 calendar years” for “2 calendar years”. (ii) Limitation on students For any calendar year after the 5th calendar year for which an individual was an exempt individual under clause (ii) or (iii) of subparagraph (A), such individual shall not be treated as an exempt individual by reason of clause (iii) of subparagraph (A), unless such individual establishes to the satisfaction of the Secretary that such individual does not intend to permanently reside in the United States and that such individual meets the requirements of subparagraph (D)(ii).

Exempt individual defined

Official source

For purposes of this subsection—

- name: motor_vehicle_business_use_minimum_fraction kind: parameter dtype: Rate source: 26 USC 7701(h) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/26/7701 excerpt: >- more than 50 percent of the use of the property subject to such agreement is to be in a trade or business of the lessee versions: - effective_from: '2024-01-01' formula: '0.50'

- name: qualified_motor_vehicle_operating_agreement kind: derived entity: MotorVehicleOperatingAgreement dtype: Judgment period: Year source: 26 USC 7701(h) metadata: proof: atoms: - path: versions[0].formula kind: condition source: corpus_citation_path: us/statute/26/7701 - path: versions[0].formula kind: import import: target: us:statutes/26/7701#motor_vehicle_business_use_minimum_fraction output: motor_vehicle_business_use_minimum_fraction hash: sha256:local versions: - effective_from: '2024-01-01' formula: >- agreement_is_with_respect_to_motor_vehicle_including_trailer and lessor_personal_liability_plus_eligible_pledged_property_value_equals_or_exceeds_acquisition_financing and lessee_separately_signed_perjury_certification_of_trade_or_business_use_fraction > motor_vehicle_business_use_minimum_fraction and lessee_separately_signed_notice_that_lessee_will_not_be_treated_as_owner_for_federal_income_tax and not lessor_knows_certification_is_false

- name: motor_vehicle_agreement_treated_as_lease kind: derived entity: MotorVehicleOperatingAgreement dtype: Judgment period: Year source: 26 USC 7701(h) metadata: proof: atoms: - path: versions[0].formula kind: condition source: corpus_citation_path: us/statute/26/7701 - path: versions[0].formula kind: import import: target: us:statutes/26/7701#qualified_motor_vehicle_operating_agreement output: qualified_motor_vehicle_operating_agreement hash: sha256:local versions: - effective_from: '2024-01-01' formula: |- qualified_motor_vehicle_operating_agreement and agreement_contains_terminal_rental_adjustment_clause and agreement_would_be_treated_as_lease_but_for_terminal_rental_adjustment_clause

- name: lessee_not_owner_during_motor_vehicle_operating_agreement kind: derived entity: MotorVehicleOperatingAgreement dtype: Judgment period: Year source: 26 USC 7701(h) metadata: proof: atoms: - path: versions[0].formula kind: condition source: corpus_citation_path: us/statute/26/7701 - path: versions[0].formula kind: import import: target: us:statutes/26/7701#qualified_motor_vehicle_operating_agreement output: qualified_motor_vehicle_operating_agreement hash: sha256:local versions: - effective_from: '2024-01-01' formula: |- qualified_motor_vehicle_operating_agreement and agreement_contains_terminal_rental_adjustment_clause

- name: transaction_has_economic_substance kind: derived entity: Transaction dtype: Judgment period: Year source: 26 USC 7701(o) metadata: proof: atoms: - path: versions[0].formula kind: condition source: corpus_citation_path: us/statute/26/7701 excerpt: >- changes in a meaningful way (apart from Federal income tax effects) the taxpayer's economic position - path: versions[0].formula kind: condition source: corpus_citation_path: us/statute/26/7701 excerpt: the taxpayer has a substantial purpose (apart from Federal income tax effects) versions: - effective_from: '2024-01-01' formula: >- economic_substance_doctrine_is_relevant_to_transaction and transaction_changes_taxpayer_economic_position_meaningfully_apart_from_federal_income_tax_effects and taxpayer_has_substantial_non_federal_income_tax_purpose_for_transaction

- name: profit_potential_taken_into_account_for_economic_substance kind: derived entity: Transaction dtype: Judgment period: Year source: 26 USC 7701(o) metadata: proof: atoms: - path: versions[0].formula kind: condition source: corpus_citation_path: us/statute/26/7701 excerpt: >- only if the present value of the reasonably expected pre-tax profit from the transaction is substantial in relation to the present value of the expected net tax benefits versions: - effective_from: '2024-01-01' formula: >- transaction_relies_on_profit_potential_for_economic_substance and present_value_of_reasonably_expected_pretax_profit_is_substantial_in_relation_to_expected_net_tax_benefits