Which of the Following Statements Regarding the Taxation of U

question 141

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?

• A)Gains from the disposition of U.S.real property are taxed to foreign persons notwithstanding the general exemption of capital gains from U.S.taxation.
• B)Gains from the disposition of U.S.real property are not taxed to foreign persons because real property gains are specifically exempt from U.S.taxation.
• C)Gains from the disposition of U.S.real property are taxed in the U.S.because such gains are treated as if they are effectively connected to a U.S.trade or business.
• D)Gains from the disposition of U.S.real property are taxed to foreign persons without regard to whether such foreign persons are engaged in a U.S.trade or business.

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Definitions:

Indemnity

A contractual agreement in which one party agrees to compensate for any losses or damages suffered by another.

Encryption

The process of converting information or data into a code, especially to prevent unauthorized access.

Electronic Documents

Digitally formatted documents, including texts, images, or data, stored and transmitted via electronic devices and software.

Signature Equivalent

A method or form that serves the same legal purpose as a handwritten signature, such as a digital signature.