Internal Revenue Service United States Department of the Treasury
Level Basic Intermediate Advanced Military International

Sources of Income

Determining Income Source

Rent and Natural Resource Royalties Income

Location of Property

The source of income from rental property is determined by the location of the property. Puerto Rican residents who receive rental income from their property in Florida have U.S. source income.

The same rule applies to natural resource royalties because real property is involved. Some examples of natural resources are:

  • Oil wells
  • Coal mines
  • Natural gas source
Source Rules table with rents and natural resource royalties rows highlighted.