Which of the Following Statements Regarding a Non-U

question 85

Multiple Choice

Which of the following statements regarding a non-U.S. person's U.S. tax consequences is true?

• A) Non-U.S. persons may be subject to withholding tax on U.S.-source investment income even if not engaged in a U.S. trade or business.
• B) Non-U.S. persons are subject to U.S. income or withholding tax only if they are engaged in a U.S. trade or business.
• C) Non-U.S. persons are not taxed on gains from U.S. real property as long as such property is not used in a U.S. trade or business.
• D) Once a non-U.S. person is engaged in a U.S. trade or business, the non-U.S. person's worldwide income is subject to U.S. taxation.

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Definitions:

Cerebrum

The largest part of the brain responsible for voluntary activities, intelligence, memory, and emotional responses.

Corpus Callosum

A broad band of nerve fibers joining the two hemispheres of the brain, facilitating communication between them.

Cerebral Hemispheres

The two halves of the brain, each controlling different functions and processes, with the left hemisphere typically managing logic and language, and the right, creativity and spatial abilities.

Spinal Nerves

Nerves that originate from the spinal cord and branch out to various parts of the body, transmitting signals between the brain and the rest of the body.