Identify which of the following statements is true.
A)Capital gains earned in the United States, other than in the conduct of a U.S. trade or business, are taxed to a nonresident alien only if the alien is physically present in the United States for at least 183 days during the tax year.
B)Aliens, who are U.S. residents, are taxed only on their U.S. income.
C)A nonresident alien from a nontreaty country is taxed at a 35% rate on U.S. source investment income without the benefit of any deductions.
D)All of the above are true.

Question

Quizplus · Accepted Answer

A) Nonresident aliens are subject to U.S. tax on capital gains if they are physically present in the U.S. for at least 183 days during the tax year, but this rule does not apply to gains related to the conduct of a U.S. trade or business. B) is incorrect because U.S. residents, including resident aliens, are taxed on their worldwide income, not just U.S. income. C) is incorrect because the tax rate and the ability to take deductions for a nonresident alien can vary based on the type of U.S. income and any applicable tax treaties.

Identify Which of the Following Statements Is True