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:
“To tax and to please, no more than to love and to be wise, is not given to men.”
—Edmund Burke (1729–1797)
“There can be no more ancient and traditional American value than ignorance. English-only speakers brought it with them to this country three centuries ago, and they quickly imposed it on the Africans—who were not allowed to learn to read and write—and on the Native Americans, who were simply not allowed.”
—Barbara Ehrenreich (b. 1941)