### Question
How is the term effectively connected income defined?


### Answer
The term **effectively connected income** is defined in *26 U.S.C. § 245* as the following:

> any income which is effectively connected (or treated as effectively connected) with the conduct of a trade or business in the United States and is subject to tax under this chapter

#### Citation:
  - *26 U.S.C. § 245*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VIII-SPECIAL DEDUCTIONS FOR CORPORATIONS**

