Identify which of the following statements is true.
A)U)S. citizens, resident aliens, and domestic corporations are taxed by the U.S. government on their worldwide income at regular U.S. tax rates.
B)Nonresident aliens and foreign corporations are not subject to U.S. taxation on their non-U.S. source investment income and part or all of their non-U.S. source trade or business income.
C)In a particular year, the overall foreign tax credit limitation permits a taxpayer to offset "excess" foreign taxes paid in one country against "excess" limitation amounts originating in other countries.
D)All of the above are true.

Question

Quizplus · Accepted Answer

A) This statement is true. U.S. citizens, resident aliens, and domestic corporations are taxed on their worldwide income at regular U.S. tax rates.

B) This statement is also true. Nonresident aliens and foreign corporations are only subject to U.S. taxation on their U.S. source income, and may be exempt from taxation on their non-U.S. source income under certain circumstances.

C) This statement is also true. The overall foreign tax credit limitation allows a taxpayer to offset excess foreign taxes paid in one country against excess limitation amounts originating in other countries, subject to certain limitations and calculations.

Therefore, all of the above statements are true.

Identify Which of the Following Statements Is True