Which of the Following Statements Regarding a Non-U

question 47

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 U.S. withholding tax on U.S.-source investment income.
• B) Non-U.S. individuals may be subject to U.S. income tax but non-U.S. corporations are never subject to U.S. income tax.
• C) Non-U.S. persons are only subject to U.S. income or withholding tax if engaged in a U.S. trade or business.
• D) Non-U.S. persons must be physically present in the United States before any U.S.-source income is subject to U.S. income or withholding tax.

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Definitions:

Warehouseman

A person or company involved in the business of storing goods for others in a warehouse for compensation.

Bailor

An individual who temporarily transfers possession but not ownership of a property or good to another, known as the bailee.

Bailee

A person or entity who is given temporary possession but not ownership of a property or goods under a bailment agreement.

Deteriorate

To become worse or diminish in quality, value, or strength.