Match the definition with the correct term.
-Income of foreign person taxed through filing of a U.S. tax return with deductions allowed against gross income.

Question

Quizplus · Accepted Answer

Effectively connected income (ECI) refers to the income of a foreign person that is connected with the conduct of a trade or business in the United States. Such income is taxed on a net basis, meaning deductions are allowed against gross income, through the filing of a U.S. tax return.

Match the Definition with the Correct Term