The Following Income of a Foreign Corporation Is Not Subject

question 84

Multiple Choice

The following income of a foreign corporation is not subject to the regular U.S.corporate income tax rates.

• A)FIRPTA gains.
• B)Capital gains effectively connected with a U.S.trade or business.
• C)Net long-term capital gains, where no U.S.trade or business exists.
• D)Fixed, determinable, annual or periodic (FDAP) income effectively connected with a U.S.trade or business.

---

Definitions:

Personal in Nature

Refers to something that is intended for or affects an individual in a private, intimate, or personal capacity.

Assignment

The transfer of rights or property from one party to another.

Creditor Beneficiaries

A creditor beneficiary is a third party that benefits from a contract wherein the promisor agrees to pay the promisee's debt to the third party.

Assignment of Rights

The transfer of legal rights from one party to another, often involving debts or benefits under a contract.