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TITLE 26-INTERNAL REVENUE CODE apportioned or allocated thereto, and a ratable part of any expenses, losses, or other deduc- tions which cannot definitely be allocated to some item or class of gross income. The remain- der, if any, shall be treated in full as taxable income from sources without the United States. (c) Cross reference For source of amounts attributable to certain aircraft and vessels, see section 861(e). (Aug. 16, 1954, ch. 736, 68A Stat. 276; Dec. 10, 1971, Pub. L. 92-178, title III,§ 314(b), 85 Stat. 528; Oct. 4, 1976, Pub. L. 94-455, title X, § 1036(b), title XIX, § 1901(b)(26)(C), 90 Stat. 1633, 1798.) AMENDMENTS 1976-Subsecs. (a)(5), (6). Pub. L. 94-455, §1901(b)(26)(C), inserted "or exchange" following "sale". Subsec. (a)(7). Pub. L. 94-455, §1036(b), added subsec. (a)(7). 1971-Subsec. (c). Pub. L. 92-178 added subsec. (c). EFFECTIVE DATE OF 1976 AMENDMENT Amendment of subsec. (a)(7) by section 1036(b) of Pub. L. 94-455 applicable to taxable years beginning after Dec. 31, 1976, see section 1036(c) of Pub. L. 94- 455, set out as an Effective Date of 1976 Amendment note under section 861 of this title. Amendment of subsecs. (a)(5), (6) by section 1901(b)(26)(C) of Pub. L. 94-455 effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 2 of this title. EFFECTIVE DATE OF 1971 AMENDMENT Enactment of subsec. (c) of this section by Pub. L. 92-178 applicable to taxable years ending after Aug. 15, 1971, but only with respect to leases entered into after such date, see section 314(c) of Pub. L. 92-178, set out as an Effective Date of 1971 Amendment note under section 861 of this title. CRoss RE,'EnENCEs Income from sources within the United States, see section 861 of this title. Income from sources without the United States, see section 901 et seq. of this title. Items not specified in section 861 or 862, see section 863 of this title. SECTION REFERRED TO IN OTHER SECTIONS ThL section is referred to in sections 638, 861, 863, 864 of this title. § 863. Items not specified in section 861 or 862 (a) Allocation under regulations Items of gross income, expenses, losses, and deductions, other than those specified in sec- tions 861(a) and 862(a), shall be allocated or ap- portioned to sources within or without the United States, under regulations prescribed by the Secretary. Where items of gross income are separately allocated to sources within the United States, there shall be deducted (for the purpose of computing the taxable income therefrom) the expenses, losses, and other de- ductions properly apportioned or allocated thereto and a ratable part of other expenses, losses, or other deductions which cannot defi- nitely be allocated to some item or class of gross income. The remainder, if any, shall be included in full as taxable income from sources within the United States. (b) Income partly from within and partly from with- out the United States In the case of gross income derived from sources partly within and partly without the United States, the taxable income may first be computed l-y deducting the expenses, losses, or other deductions apportioned or allocated thereto and a ratable part of any expenses, losses, or other deductions which cannot defi- nitely be allocated to some item or class of gross income; and the portion of such taxable income attributable to sources within the United States may be determined by processes or formulas of general apportionment pre- scribed by the Secretary. Gains, profits, and income- (1) from transportation or other services rendered partly within and partly without the United States, (2) from the sale or exchange of personal property produced (in whole or in part) by the taxpayer within and sold or exchanged without the United States, or produced (in whole or in part) by the taxpayer without and sold or exchanged within the United States, or (3) derived from the purchase of personal property within a possession of the United States and its sale or exchange within the United States, shall be treated as derived partly from sources within and partly from sources without the United States. (Aug. 16, 1954, ch. 736, 68A Stat. 277; Oct. 4, 1976, Pub. L. 94-455, title XIX, §§ 1901(b)(26)(C), (D), 1906(b)(13)(A), 90 Stat. 1798, 1799, 1834.) AMENDMENTS 1976-Subsec. (a). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec, (b). Pub. L. 94-455, §§ 1901(b)(26)(C), (D), 1906(b)(13)(A), struck out "or his delegate" following "Secretary" in the provisions preceding par. (1), and inserted "or exchange" following "sale" in pars. (2) and (3), and "or exchanged" following "sold" in par. (2) wherever appearing. EFFECTIVE DATE OF 1976 AMENDMENT Amendment of subsec. (b) by section 1901(b)(26)(C), (D) of Pub. L. 94-455 effective for taxable years begin- ning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amend- ment note under section 2 of this title. § 864. Definitions (a) Produced For purposes of this part, the term "pro- duced" includes created, fabricated, manufac- tured, extracted, processed, cured, or aged. (b) Trade or business within the United States For purposes of this part, part II, and chapter 3, the term "trade or business within the United States" includes the performance of personal services within the United States at any time within the taxable year, but does not include- (1) Performance of personal services for foreign employer The performance of personal services- (A) for a nonresident alien individual, for- eign partnership, or foreign corporation, Page 559