The Throwback Rule Requires That

question 144

Multiple Choice

The throwback rule requires that:

• A)Sales of tangible personal property are attributed to the state where they originated, if the taxpayer is not taxable in the state of destination.
• B)Sales of tangible personal property are attributed to the seller's state, even if the taxpayer is not taxable in the state of destination.
• C)Sales of services are attributed to the state of commercial domicile.
• D)Capital gain/loss is attributed to the state of commercial domicile.

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Definitions:

Yearly Savings Rate

The percentage of one's income that is saved annually, often used in personal financial planning.

FOB Shipping Point

A term used in shipping contracts to indicate that a buyer must pay for the shipping costs and is responsible for the goods once they leave the seller's premises.

FOB Destination

FOB Destination is a shipping term indicating that the seller retains ownership and liability of goods until they are delivered to the buyer's specified location, at which point the buyer assumes responsibility.

Title Passage

The point in time when the ownership (title) of goods passes from seller to buyer as per the terms of the sales contract.