FDAP

Fixed, Determinable, Annual, Periodical (Income)

http://www.irs.gov/Individuals/International-Taxpayers/Fixed,-Determinable,-Annual,-Periodical-%28FDAP%29-Income

Type
Regulatory

Jurisdiction
U.S.

Sponsor/Regulator
U.S. Internal Revenue Service

Description
Fixed, Determinable, Annual, or Periodical (FDAP) income is all income, except: Gains derived from the sale of real or personal property (including market discount and option premiums, but not including original issue discount); Items of income excluded from gross income, without regard to the U.S. or foreign status of the owner of the income, such as tax-exempt municipal bond interest and qualified scholarship income.

Key Facts
Income is fixed when it is paid in amounts known ahead of time. Income is determinable whenever there is a basis for figuring the amount to be paid. Income can be periodic if it is paid from time to time. It does not have to be paid annually or at regular intervals. Income can be determinable or periodic, even if the length of time during which the payments are made is increased or decreased.

Who it affects
U.S. taxpayers

Additional Information
Examples of FDAP Income (IRS)

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