Mitch, an NRA, Sells a Building in Omaha for $1

question 64

Multiple Choice

Mitch, an NRA, sells a building in Omaha for $1 million. His basis in the building is zero for both regular tax and AMT purposes. Mitch has no other contact with the U.S. other than the ownership of the building. How much Federal income tax is due from Mitch on the sale?

• A)$0, he is an NRA.
• B)The amount realized times the top individual tax rate.
• C)The net gain times the top capital gains tax rate.
• D)The net gain taxed at the lesser of the applicable regular or AMT rates.

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Definitions:

Otology Specialist

A medical doctor specializing in the study, diagnosis, and treatment of diseases and disorders of the ear.

Uveal Track

Possibly a misprint for "Uveal Tract," which is the middle layer of the eye encompassing the iris, ciliary body, and choroid.

Uveitis

Inflammation of the uvea, the middle layer of the eye, which includes the iris, ciliary body, and choroid.

Prefrontal Cortex

The part of the brain located at the front of the frontal lobes, involved in complex behaviors, decision making, and moderating social behavior.