Which of the Following Statements Regarding the U

question 58

Multiple Choice

Which of the following statements regarding the U.S. taxation of non-U.S. persons is true?

• A) A non-U.S. person's effectively connected U.S. business income is taxed by the U.S. only if it is portfolio income.
• B) A non-U.S. person's effectively connected U.S. business income is subject to U.S. income taxation.
• C) A non-U.S. person may earn income from selling U.S. real property without incurring any U.S. income tax.
• D) A non-U.S. person must spend at least 183 days in the United States before any effectively connected income is subject to U.S. taxation.

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Definitions:

Cash Savings

The amount of money a company or individual keeps on hand that is not invested, spent, or used in paying off debts.

Salvage Value

The estimated value for which an asset can be sold at the end of its useful life, typically used for depreciation calculations.

Internal Rate

Often referred to as the internal rate of return (IRR), it is a financial metric used to estimate the profitability of potential investments.

Annual Cost Savings

The reduction in costs realized over a year, from actions such as process improvement or cost-cutting measures.