Liang,an NRA,is sent to the United States by Fu Corporation,her foreign employer.She spends 50 days in the United States and earns $10,000 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 calculated by multiplying the total income earned during U.S. working days by the ratio of U.S. working days to total working days. Therefore, Liang's U.S.-source taxable income is $8,000 (40/50 * $10,000). Liang is not subject to U.S. taxation on the income earned during her foreign working days because it is not U.S.-source income.

Liang,an NRA,is Sent to the United States by Fu Corporation,her