Russell Starling, an Australian citizen and resident, received the following investment income during 2016: $5,000 of dividend income from ownership of stock in a U.S. corporation, $10,000 interest from a certificate of deposit in a U.S. bank, $3,000 of interest income earned from a loan to Clint Westwood, a U.S. citizen, and $2,000 capital gain from sale of a stock in a U.S. corporation. How much of Russell's income will be subject to U.S. taxation in 2016?

Question

Quizplus · Accepted Answer

Russell's U.S. source income subject to U.S. taxation includes the $5,000 dividend income and the $3,000 interest income from the loan to Clint Westwood, totaling $8,000. The interest from the U.S. bank and the capital gain from the sale of stock are not subject to U.S. taxation for a non-resident alien.

Russell Starling, an Australian Citizen and Resident, Received the Following