Rodrigo LaVaar is a resident and citizen of Peru. Peru and the United States do not have
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Rodrigo LaVaar is a resident and citizen of Peru. Peru and the United States do not have a tax treaty. Rodrigo opens a brokerage account with a brokerage house in New York in order to trade in U.S. stocks and securities. Rodrigo purchased 1,000 shares in Karma Machine Inc., a Texas corporation. In 2023, Karma Machine Inc. pays a dividend of $1 per share, all out of its earnings and profits. What is the U.S. tax consequence to Rodrigo on the $1,000 of dividend income received from the investment in Karma Machine Inc.?
- 1 No tax because the dividend is paid by a U.S. corporation to a non-U.S. resident
- 2 No tax because dividends are subject to the DRD
- 3 The $1,000 of dividend income is subject to U.S. net income tax
- 4 The $1,000 of dividend income is subject to grossS. withholding tax at 30%
Related Book For
Statistics Unlocking The Power Of Data
ISBN: 9780470601877
1st Edition
Authors: Robin H. Lock, Patti Frazer Lock, Kari Lock Morgan, Eric F. Lock, Dennis F. Lock
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