Which of the Following Statements Regarding the Taxation of U

question 105

Multiple Choice

Which of the following statements regarding the taxation of U.S.real property gains recognized by foreign persons not engaged in a U.S.trade or business is not true?

• A)Gains from the disposition of U.S. real property are taxed to foreign persons notwithstanding the general exemption of capital gains from U.S. taxation.
• B)Gains from the disposition of U.S. real property are not taxed to foreign persons because real property gains are specifically exempt from U.S. taxation.
• C)Gains from the disposition of U.S. real property are taxed in the U.S. because such gains are treated as if they are effectively connected to a U.S. trade or business.
• D)Gains from the disposition of U.S. real property are taxed to foreign persons without regard to whether such foreign persons are engaged in a U.S. trade or business.
• E)None of the above.

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Definitions:

Average Collection Period

The average number of days it takes for a business to collect payments from its customers after a sale has been made.

Discount Policy

A company's strategy regarding the conditions under which discounts are offered to customers, affecting sales volume, revenue, and cash flows.

Credit Terms

Refers to the conditions under which credit is extended by a lender to a borrower, including repayment schedule, interest rate, and due dates.

Net 45

A term indicating that payment is due 45 days after the invoice date.