Jimner was born in El Salvador and has lived there his whole life. Jimner has never visited the United States, nor does he hold a green card. Jimner received 4 types of income from the U.S., however. He sold stock in a C Corporation organized in the U.S. and realized a gain on the sale. He received a dividend from a different U.S. based company, Tellco Corporation. In addition, he received interest on a bond issued by LBACorporation (a U.S. company) and realized a gain on the sale of 2,000 acres of undeveloped land located in North Carolina. The United States does not have an income tax treaty with El Salvador. Describe the U.S. tax consequences of each of the above items of income. 

How is the gain on the sale of stock taxed (if at all)? 

How is the dividend taxed (if at all)? 

How is the interest taxed (if at all)? 

How is the gain on the sale of the land taxed (if at all)? 

How would your answers change if Jimner held a green card

Answer rating: 100% (QA)

The US generally taxes income based on its source not the taxpayers resid... View the full answer