Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

T, a citizen of Argentina, had never visited the U.S. until February 1, 2023 and although T intended to remain in the U.S. for only

T, a citizen of Argentina, had never visited the U.S. until February 1, 2023 and although T intended to remain in the U.S. for only 2 months before T visited, T was having such a nice time that T remained in the U.S. through September 30, 2023 when he returned home to Argentina.  In need of money while in the U.S., on July 15, 2023, T sold shares in Argento, S.A., an Argentine public company, for $400,000.  T bought his shares in 2020 for $150,000 and when T arrived in the U.S. on February 1, 2023, T's shares were worth $420,000.

T's U.S. income tax consequences will be:

Group of answer choices

T will have a long-term capital loss of $20,000.

 

T will be exempt from U.S. income tax as to the sale of his Argento, S.A. shares.

 

T's U.S. income tax will be 30% of his amount realized from the sale of his Argento, S.A. shares.

 

T will have a long-term capital gain of $250,000.

 


Step by Step Solution

There are 3 Steps involved in it

Step: 1

The detailed answer for the above question is provided below ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Smith and Roberson Business Law

Authors: Richard A. Mann, Barry S. Roberts

15th Edition

1285141903, 1285141903, 9781285141909, 978-0538473637

More Books

Students also viewed these Accounting questions