Which of the Following Statements Regarding the Taxation of U

question 134

Multiple Choice

Which of the following statements regarding the taxation of U.S. real property gains recognized by non-U.S. persons not engaged in a U.S. trade or business is false? Gains from the disposition of U.S. real property are:

• A) Not taxed to non-U.S. persons because real property gains are specifically exempt from U.S. taxation.
• B) Taxed to non-U.S. persons without regard to whether such non-U.S. persons are engaged in a U.S. trade or business.
• C) Taxed in the U.S. because such gains are treated as if they are effectively connected to a U.S. trade or business.
• D) Taxed to non-U.S. persons notwithstanding the general exemption of capital gains from U.S. taxation.

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Definitions:

Stated Value

A specified value assigned to no-par-value stock by the company's board of directors.

General Journal

A comprehensive accounting record where all financial transactions are initially recorded, using a double-entry accounting system.

Nonparticipating

typically refers to an insurance or investment product feature where the holder does not have the right to receive dividends or bonuses generated from the underlying pool of assets.

Par Value

The nominal or face value of a stock or bond, as stated by the issuing company, which may bear no relation to its market value.