Which of the Following Statements Regarding a Non-U

question 85

Multiple Choice

Which of the following statements regarding a non-U.S. person's U.S. tax consequences is true?

• A) Non-U.S. persons may be subject to withholding tax on U.S.-source investment income even if not engaged in a U.S. trade or business.
• B) Non-U.S. persons are subject to U.S. income or withholding tax only if they are engaged in a U.S. trade or business.
• C) Non-U.S. persons are not taxed on gains from U.S. real property as long as such property is not used in a U.S. trade or business.
• D) Once a non-U.S. person is engaged in a U.S. trade or business, the non-U.S. person's worldwide income is subject to U.S. taxation.

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Definitions:

Minority Group

A social group that occupies a subordinate position in society and receives unequal treatment, often identified by racial, ethnic, religious, or sexual orientation differences.

Mitochondrial DNA

Genetic material found in mitochondria, passed from mothers to offspring, and used to trace maternal lineage and human evolution.

Genetically

Pertaining to genes and heredity, often used in contexts discussing inherited characteristics or genetic engineering.

Genetic Difference

Variations in the DNA sequence among individuals or populations, which can result in different traits or susceptibilities to diseases.