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

question 64

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

• A)$0, he 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.

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Definitions:

Feudal Domain

Lands during the Middle Ages under the control of a lord or noble, governed based on feudalism where peasants worked the land in exchange for military protection.

English Women

Women from England or of English descent, known for their diverse contributions to society, culture, and history across various periods.

Seventeenth Century

The century from 1601 to 1700, marked by major cultural and scientific advancements, as well as significant religious and political conflicts including the Thirty Years' War.

Indentured Servants

Laborers who agreed to work for a specified number of years in exchange for transportation to the New World, along with room and board, during the 17th and 18th centuries.