Just some guy wrote:
Under us territorial jurisdiction law, living in Orlando I am in Florida territory or us territory?
Great, lets break it down.
Nonresident aliens are taxed only on their income from sources within
the United States
Mom and pop restaurant in Orlando Florida, is it in Florida or US territory? According to American law based on title and land ownership?[/quote]
Context matters, and you don't get to pick and choose which definition to apply in a particular context. Title and land ownership matter when it comes to laws that govern things like public lands, but are irrelevant in the tax context. Everything that is within the boundaries of Florida is also within the boundaries of the United States, which is what matters here.
and on certain income connected with the conduct of a trade or business in the United States
Trade or business, that sounds weird, should it not to make it clear say " on certain income earned in the US"?
Not really. The key words are not "conduct of a trade or business." The important phrase is "connected with." The idea is that income of a nonresident alien that is earned abroad will still be taxable in the USA if that income is "connected with" the work done in the USA. For example, work done by an attorney during a site visit to a factory in Mali could be "connected with" several months of work done in Florida working on a contract for the sale of that factory.
what is this trade or business?
(26) Trade or business
The term “trade or business” includes the performance of the functions of a public office.
Oh oh right, it just says includes, meaning all trades and business including the functions right?
No, it means all trades and businesses, regardless of whether they include the functions of a public office.
But what is that case taking about not enlarging definitions from what is written? oh never mind.
You really have to learn to read the whole statutes. If you don't, you're going continue to fail. You quoted 26 USC §7701(a)(26). If you scroll down to 26 USC §7701(c), you'll find that "include" is defined:
(c) Includes and including
The terms “includes” and “including” when used in a definition contained in this title shall not be deemed to exclude other things otherwise within the meaning of the term defined.
So "trade and business includes the performance.." can not exclude anything that would otherwise be within the meaning of "trade and business." Since "trade or business" is not otherwise defined (whether it's a phrase or term), courts will generally look to the ordinary meaning of the words. (By the way, the definition is in there to bring public officials under the definition for the purposes of things like their business expense deductions.)