Julio, a nonresident alien, realizes a gain on the sale of commercial real estate located in Omaha. The real estate was sold to Mariana, Julio's cousin who is also a nonresident alien. Julio recognizes foreign-source income from the sale because his home country is not the United States.

Question

Quizplus · Accepted Answer

The source of income from the sale of real estate is determined by the location of the property, not the residence of the seller or the buyer. Since the property is located in Omaha, United States, the income is considered U.S.-source income, not foreign-source income.

Julio, a Nonresident Alien, Realizes a Gain on the Sale