WaterCo, a domestic corporation, purchases inventory for resale from unrelated distributors outside the U.S. It resells this inventory to U.S. customers with title passing inside the United States. What is the sourcing of WaterCo's inventory sales income?

Question

Quizplus · Accepted Answer

The sourcing of WaterCo's inventory sales income is considered 100% U.S. source because the title passes inside the United States, which is a key factor in determining the source of income for sales of inventory.

WaterCo, a Domestic Corporation, Purchases Inventory for Resale from Unrelated