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

question 36

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 United States other than the ownership of the building. How much Federal income tax is due from Mitch on the sale?

• A) $0, because Mitch 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.

Knowledge of how taxes and government transfers influence income distribution.

Analyze how income distribution impacts individuals' incentives in a market economy.

Recognize the impact of educational attainment on income levels.

Understand the role of marginal productivity in determining income.

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Definitions:

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