A NON-RESIDENT alien is your client. Assume his country does not have a tax treaty with the USA. He expresses an interest in buying an apartment building in College Park to rent to students of the University of Maryland there (Have you heard of the school?!). He is also interested in investing in US banks, mutual funds, and stocks on the stock exchange here.

Please write a short memo advising of the tax consequences and offer any advice necessary. Basically you want your memo to convince me that you know the tax areas/issues that need to be discussed with the client even if your memo cannot definitively say for sure a tax result since choices may exist on how to structure the transactions. Let me know that you understand what those choices might be and the consequences of those choices.

Answer rating: 100% (QA)

The Double Tax Avoidance Agreement DTAA is a treaty that is signed by two countries The agreement is signed to make a country an attractive destination as well as to enable NRIs to take relief from ha... View the full answer