I am a non-resident alien; I am retired and do not conduct any business within the US. However, I receive royalty income from some oil wells located in Oklahoma. Is this royalty income determined to be effectively connected income and therefore should I report in on Schedule E and also Line 18 on the 1040NR and do I have to go through the fairly-lengthy election statement to have it classified as ECI? Thanks.
1 Answer
It is ECI since the income is sourced to the US. It should be reported on your 1040NR Schedule E.