A nonresident alien realizes a gain on the sale of commercial real estate located in Cleveland,Ohio.The real estate was sold to his cousin who is also a nonresident alien.The seller has foreign-source income from the sale because the seller is a foreign resident.

Question

Quizplus · Accepted Answer

The source of income from the sale of real estate is determined by the location of the property, not the residency of the seller. Since the property is located in Ohio, the income is U.S.-source income.

A Nonresident Alien Realizes a Gain on the Sale of Commercial