Which of the Following Statements Regarding the Taxation of U

question 7

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 false? Gains from the disposition of U.S.real property are:

• A)Taxed to foreign persons notwithstanding the general exemption of capital gains from U.S.taxation.
• B)Taxed to foreign persons without regard to whether such foreign 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)Not taxed to foreign persons because real property gains are specifically exempt from U.S.taxation.

---

Definitions:

Income

Earnings received by an individual or entity, typically in the form of wages, salaries, or various types of investments.

Decreases

A decrease in the magnitude, amount, or intensity of an object or concept.

Horizontal Line

A straight line that has a constant y-coordinate for all its points, indicating it is parallel to the x-axis.

Slope

The measure of steepness or incline of a line, indicating the rate of change between two variables.