USCo, a U.S. corporation, purchases inventory from distributors within the United States and resells this inventory to customers outside the United States, with title passing outside the United States. Profit on the sale is $10,000. What is the sourcing of the USCo's inventory sales income?

Question

Quizplus · Accepted Answer

The sourcing of USCo's inventory sales income is considered foreign source because the title to the inventory passes outside the United States. According to U.S. tax principles, the source of income from the sale of inventory is generally determined by the location where title passes, which in this case is outside the United States.

USCo, a US