Which of the Following Statements Regarding Foreign Persons Not Engaged

question 140

Multiple Choice

Which of the following statements regarding foreign persons not engaged in a U.S.trade or business is true?

• A)Foreign persons are not subject to U.S.tax if not engaged in a U.S.trade or business.
• B)Foreign persons with any U.S.-source income are taxed on any net investment income (after expenses).
• C)Foreign persons are subject to potential withholding taxes on the gross amount of U.S.-source investment income.
• D)Foreign persons with only U.S.-source investment income are exempt from U.S.tax.
• E)None of the above statements are true.

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Definitions:

Reduction Of

A decrease in amount, size, intensity, or the number of something, often referring to cost, price, or rates.

Increase

A rise in quantity, size, value, or extent.

Percent

A proportion or share in a whole, expressed as a fraction of 100.

Percentage Less

The reduced amount expressed as a fraction of a hundred.