Mitch, an NRA, Sells a Building in Omaha for $1

question 126

Multiple Choice

Mitch, an NRA, sells a building in Omaha for $1 million. His basis in the building is zero for both regular tax and AMT purposes. Mitch has no other contact with the U.S. other than the ownership of the building. How much Federal income tax is due from Mitch on the sale?

• A) $0, as Mitch is an NRA.
• B) The amount realized times the top individual tax rate.
• C) The net gain times the top capital gains tax rate.
• D) The net gain taxed at the lesser of the applicable regular or AMT rates.

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Definitions:

Antibiotic-Resistant

Referring to bacteria that have evolved to survive exposure to antibiotics that were previously effective in killing them or inhibiting their growth.

Government Policy

Actions and decisions made by the government to achieve certain goals or address specific issues within a country.

Antibiotic Overuse

The excessive or inappropriate use of antibiotics, contributing to antibiotic resistance, where bacteria evolve to become resistant to these medications.

Externality Internalized

A situation where a firm or individual takes into account the external costs or benefits of their actions, resulting in an outcome that reflects the true costs or benefits to society.