Which of the Following Statements Regarding a Foreign Person's U

question 76

Multiple Choice

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

• A) Foreign persons are subject to U.S. income or withholding tax only if they are engaged in a U.S.-trade or business.
• B) Foreign persons may be subject to withholding tax on U.S.-source investment income even if not engaged in a U.S. trade or business.
• C) Foreign 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 foreign person is engaged in a U.S. trade or business, the foreign person's worldwide income is subject to U.S. taxation.

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Definitions:

Double-masked

In medical studies, a trial in which neither the participants nor the researchers know who belongs to the control group and who belongs to the experimental group.

Placebo

An inert substance or treatment which has no therapeutic effect, used as a control in testing new drugs.

Anxiety

An emotion characterized by apprehension, tension, or discomfort stemming from the anticipation of an unclear result, frequently related to apprehension over what is to come.

Matched Control

A technique in scientific studies where individuals in a control group are deliberately matched with participants in the experimental group based on certain characteristics to ensure comparability.