[Code of Federal Regulations]
[Title 26, Volume 9]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.861-5]

[Page 134-135]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1--INCOME TAXES--Table of Contents
 
Sec. 1.861-5  Rentals and royalties.

    Gross income from sources within the United States includes rentals 
or royalties from property located in the United States or from any 
interest in such property, including rentals or royalties for the use 
of, or for the privilege of using, in the United States, patents, 
copyrights, secret processes and formulas, good will, trademarks, trade

[[Page 135]]

brands, franchises, and other like property. The income arising from the 
rental of property, whether tangible or intangible, located within the 
United States, or from the use of property, whether tangible or 
intangible, within the United States, is from sources within the United 
States. For taxable years beginning after December 31, 1966, gains 
described in section 871(a)(1)(D) and section 881(a)(4) from the sale or 
exchange after October 4, 1966, of patents, copyrights, and other like 
property shall be treated, as provided in section 871(e)(2), as rentals 
or royalties for the use of, or privilege of using, property or an 
interest in property. See paragraph (e) of Sec. 1.871-11.

[T.D. 7378, 40 FR 45434, Oct. 2, 1975]