Chapter 9 Cases - International Taxation Foreign Persons...

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Foreign Persons Investing in the United States Cases For next class, Read Chapter 10 and prepare solution to problem in Study Guide. Case 1 T, an individual taxpayer, is married and a citizen of Chile and a resident of Brazil. Neither he nor his wife were present in the United States during the current year. T's income includes the following: $8,000 cash dividend from Tarry Corp., a U.S. corporation, which earned more than 20 percent of its gross income in each of the past three years from U.S. sources; $7,500 cash dividend from World Corp., a Venezuelan corporation, which conducts all its business outside the U.S.; $4,000 of interest from Tarry Corp. bonds; $9,000 of gross rents from rental property located in Houston, Tx. Expenses and depreciation on the rental property amounted to $6,000. (T's activities with regard to this property do not constitute engaging in a trade or business.) $2,500 gain on sale of 10 shares of Tarry Corp. stock. What is T's U.S. (Federal) taxable income for the current year and at what rates is it
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This note was uploaded on 09/16/2011 for the course TAX 6527 taught by Professor Andrewjudd during the Spring '11 term at University of Central Florida.

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Chapter 9 Cases - International Taxation Foreign Persons...

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