Which of the following is NOT a category of effectively connected income for which a foreign...
Which of the following is NOT a category of effectively connected income for which a foreign owned U.S. trade or business must pay U.S. income tax?
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a. |
U.S. source income. |
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b. |
Foreign-source income attributable to a U.S. office. |
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c. |
Sale of stock of a US corporation by a foreign shareholder. |
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d. |
Deferred gain from an installment sale of business equipment during a year the business was engaged in a U.S. trade or business. |
Homework Answers
Which of the following is NOT a category of effectively connected income for which a foreign owned U.S. trade or business must pay U.S. income tax?
Ans: Foreign-source income attributable to a U.S. office.
If the person has income from U.S. sources that is not effectively connected with a U.S. trade or business, the United States imposes a tax on the gross amount of the income, but only if the income is dividends, interest, royalties, or other fixed or determinable annual or periodical income (FDAP)
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