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:

Specific Duties

Tasks or roles defined precisely and explicitly for a particular job or function.

Executive Agencies

Parts of the government responsible for the daily administration and enforcement of federal laws.

Cabinet-Level Agencies

Agencies of the U.S. federal government that are under the direct authority of a Cabinet secretary, who serves at the discretion of the President and is part of the Executive branch.

Subpoena Duces Tecum

An order to appear and bring specified documents.