### Question
What does effectively connected taxable income mean?


### Answer
**Effectively connected taxable income** has the following meaning in *26 U.S.C. § 1446*:

> the taxable income of the partnership which is effectively connected (or treated as effectively connected) with the conduct of a trade or business in the United States computed with the following adjustments:


(1) Paragraph (1) of section 703(a) shall not apply

#### Citation:
  - *26 U.S.C. § 1446*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 3-WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN CORPORATIONS > Subchapter A-Nonresident Aliens and Foreign Corporations**

