Sean,a citizen of Ireland with no trade or business activities in the United States,sells at a gain 200 shares of MicroSoft,Inc. ,a U.S.company.The sale takes place through Sean's broker in Dublin.How is this gain treated for U.S.tax purposes?

Question

Quizplus · Accepted Answer

Sean, as a nonresident alien with no trade or business activities in the United States, is only subject to U.S. tax on certain types of U.S.-source income, such as income from U.S. real property and income from the conduct of a trade or business in the United States. The gain on the sale of Microsoft shares is foreign-source income and therefore not subject to U.S. taxation.

Sean,a Citizen of Ireland with No Trade or Business Activities