Which of the Following Statements Regarding the U

question 135

Multiple Choice

Which of the following statements regarding the U.S.taxation of foreign persons is true?

• A)A foreign person's effectively connected income is subject to U.S.income taxation.
• B)A foreign person's effectively connected income is tax free unless it is portfolio income.
• C)A foreign person may earn income from U.S.real property without incurring any U.S.income tax.
• D)A foreign person must spend at least 183 days in the United States before any effectively connected income is subject to U.S.taxation.

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Definitions:

Defective Product

A product that has a flaw or weakness that makes it unsafe or unsuitable for its intended use.

Fire Insurance Policy

A contract that provides financial compensation for losses or damage to property caused by fire.

Assignable

Refers to something capable of being transferred or made over to the legal ownership of another party.

Consent

Permission for something to happen or an agreement to do something.