Question about Effectively Connected Income

Technical topics regarding tax preparation.
#1
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HAWAII
Is there a way to check to see if an election was made over ten years ago to treat rental income from a Kona property owned by a Canadian family partnership as effectively connected income pursuant to Sec 871(d)? There's a new box to check on Schedule OI Form 1040NR regarding whether or not this is the first year of the election or it is an ongoing election. I did the research years ago, and unfortunately the file containing that research was shredded last year, but I believe the proper election was made when we filed the first partnership return and family 1040NRs. We have reported rental income and applied expenses against the income which has created a loss for each year which is duly reported on K-1's and 1040NR's. There is no other US income It has never been questioned and we have never gotten any mail regarding the application of expenses to the rental income.

I'll be glad when this tax year is complete. It seems that every time I open a return there is some crazy new item to worry about and research no matter how small. :evil:
 

#2
Noobie  
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Jacksonville, FL
If you have been treating the income and expenses as ECI in past years, then this would not be the first year of the election. First year of an election would imply that you changed your methods. Doesn't sound like you have.
 


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