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:

Robert La Follette

An American politician and the founder of the Progressive movement, he served as a member of the House of Representatives, the Governor of Wisconsin, and a U.S. Senator, advocating for democratic reforms and the regulation of big business.

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A sector focused on the construction, operation, and management of railways, which are critical for the transportation of goods and passengers.

Corporations

Organized entities recognized by law as having a distinct identity, separate from their owners, and authorized to operate a business.

Social Gospel Movement

A religious and social reform movement in the late 19th and early 20th centuries that sought to apply Christian principles to social problems, such as poverty and inequality.