Tien is a citizen of Country C, which does not have an income tax treaty with the

Question:

Tien is a citizen of Country C, which does not have an income tax treaty with the United States. During the current year (2016), she is a nonresident alien for U.S. tax purposes and earns the following amounts:
Dividend received from a U.S. corporation ..........................................................$ 2,500
Rentals from leasing a U.S. building .......................................................................13,000
Interest received from a foreign corporation ..........................................................5,000
Tien does not conduct a U.S. trade or business. Her interest and depreciation expenses from leasing the building under a net lease arrangement total $7,000.
a. Assuming the real estate income is investment related, what is Tien’s U.S. tax liability? How is the tax collected?
b. How would your answer to Part a change if Tien makes an election to treat the real estate activity as a U.S. trade or business?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Federal Taxation 2018 Corporations, Partnerships, Estates & Trusts

ISBN: 9780134550923

31st Edition

Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson

Question Posted: