Under Which of the Following Scenarios Could Charles, a Citizen

question 40

Multiple Choice

Under which of the following scenarios could Charles, a citizen of England, be eligible to claim the "closer connection" exception to the substantial presence test in 2018?

• A) Charles spent 183 days in the United States in 2018 and has his tax home in England.
• B) Charles spent 183 days in the United States in 2018 and has his tax home in the United States.
• C) Charles spent 182 days in the United States in 2018 and has his tax home in England.
• D) Charles spent 182 days in the United States in 2018 and has his tax home in the United States.

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Definitions:

Direct Materials

Raw materials that can be directly attributed to the manufacturing of a product.

Direct Labor-Hours

Overall hours employees spend directly involved in the fabricating process.

Variable Overhead

Overhead costs that fluctuate with the level of production activity, such as utilities or indirect materials.

Direct Materials

Raw materials that are directly attributable and allocable to a finished product in the manufacturing process.