Subpart F income is ________.
A)usually earned by a branch rather than a corporation
B)not taxed to the parent unless a dividend is remitted
C)not eligible for the tax credit
D)passive and usually derived from operations in a tax-haven country

Question

Quizplus · Accepted Answer

Subpart F income refers to income earned by controlled foreign corporations (CFCs) from passive investments and is generally considered to be earned in tax-haven countries. It is subject to current taxation in the hands of the U.S. shareholders of the CFC, regardless of whether the income is actually distributed.

Subpart F Income Is ________