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what does it mean when The tax treatment of a foreign taxpayer's U.S.-source income from inbound transactions depends on whether the income is effectively connected

what does it mean when The tax treatment of a foreign taxpayer's U.S.-source income from inbound transactions depends on whether the income is effectively connected with a U.S. trade or business meaning that deductions are allowed on a net basis rather than a gross basis where there's no deductions allowed

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