From a Multiple choice question point of view the answer is - D) The income is effectively connected with a business in the U.S.
As per the Publication 514, U.S. nonresident alien taxpayer is not able to claim credit except,
1. Bonafide resident of Puerto Rico for the full or entire tax year.
2. paid/accrued tax to a foreign country or U.S. possession on income from foreign sources which is connected with a trade or business in the U.S.
Hence, Option D is correct.
Further, just to give you a practical view, to promote trade and commerce at global level generally tax treaties (also known as double tax avoidance agreements) are signed between countries, so if such treaties/agreements gives credit to any particular transaction or person then credit would be available up to the extent of the particular transactions or person.
According to Publication 514, Foreign Tax Credit for Individuals, a U.S. nonresident alien taxpayer may qualify...
According to Publication 514, Foreign Tax Credit for Individuals, a taxpayer may not claim the Foreign Tax Credit for foreign taxes paid on income that is which of the following? A) Passive B) Earned C) Unearned D) Excluded
According to Publication 514, Foreign Tax Credit for Individuals,all of the following are eligibility requirements to claim the Foreign Tax Credit, except the tax must be which of the following? A) Paid, but not accrued B) Imposed on the taxpayer C) Legal and actual foreign tax liability D) An income tax (or a tax in lieu of an income tax)
A taxpayer may be eligible to claim a foreign tax credit on taxes paid to a foreign country on income that is: Choose one answer. a. Taxed only on the U.S. return. b. Taxed by a foreign country and the U.S. c. Taxed only by a foreign country. d. Nontaxable to the foreign country and the U.S
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And there was a buy-sell arrangement which laid out the conditions under which either shareholder could buy out the other. Paul knew that this offer would strengthen his financial picture…but did he really want a partner?It was going to be a long night. read the case study above and answer this question what would you do if you were Paul with regards to financing, and why? ntroductloh Paul McTaggart sat at his desk. Behind him, the computer screen flickered with...