Liang, an NRA, is sent to the United States by Fuller Corporation, her foreign employer.She spends 50 days in the United States and earns $15,000 for a two-month period.This amount is attributable to 40 U.S.working days and 10 foreign working days.Her employer does not have a U.S.trade or business and Liang spends no other time in the U.S.for the tax year.Liang's U.S.-source taxable income is:

Question

Quizplus · Accepted Answer

Liang's U.S.-source taxable income is based on the proportion of her working days spent in the U.S. Since she worked 40 out of 50 days in the U.S., 80% of her income is U.S.-source. Therefore, $15,000 * 80% = $12,000.

Liang, an NRA, Is Sent to the United States by Fuller