Tax Imposed
FIRPTA gain is subject to tax as effectively connected income. Nonresident alien individuals are subject to tax on such income at regular graduated tax rates for U.S. individuals. The deduction for personal exemptions, certain adjustments to gross income, and most itemized deductions are not allowed. Foreign corporations are subject to tax on such income at regular corporate income tax rates. The branch profits tax under Internal Revenue Code section 884 may apply, subject to the branch termination exception. The Alternative Minimum Tax may also apply.
Read more about this topic: Foreign Investment In Real Property Tax Act
Famous quotes containing the words tax and/or imposed:
“I have no doubt that it was a principle they fought for, as much as our ancestors, and not to avoid a three-penny tax on their tea; and the results of this battle will be as important and memorable to those whom it concerns as those of the battle of Bunker Hill, at least.”
—Henry David Thoreau (1817–1862)
“...I am who I am because I’m a black female.... When I was health director in Arkansas ... I could talk about teen-age pregnancy, about poverty, ignorance and enslavement and how the white power structure had imposed it—only because I was a black female. I mean, black people would have eaten up a white male who said what I did.”
—Joycelyn Elders (b. 1933)