Trade or Business term in the United States

Trade or Business in Tax Law

The term “trade or business” is an internal revenue service (IRS) term of art. At 26 U.S.C. § 7701(a)(26). It is defined as “includes the performance of the functions of a public office.” Rules of construction preclude expanding application of the term to a more universal meaning than that designated by example. Where the Internal Revenue Code is concerned, except where there is unique, specific application, the term “trade or business” means some governmental position or enterprise.

The OMB number for 26 CFR § 1.6091-3 corresponds with the Form 1040NR tax return, which is a return filed by or for nonresident aliens with income from sources within the United States other than income derived from United States trade or business.

See Also

Course Of Trade
Transact
Capital Assets
Apprenticeship