12 Questions
Under the 'substantial presence' test, how many days was Danny physically present in the U.S. in 2024?
120 days
Which of the following activities do NOT count towards the 'substantial presence' test for U.S. residency?
Earning business income
What does 'ECI' stand for in the context of U.S. tax treatment of inbound transactions for individuals?
Effectively Connected Income
In the U.S. tax context, what does 'FDAP' stand for in relation to investment income?
Fixed, Determinable, Annual or Periodic
How is an NRA's ECI (effectively connected income) taxed compared to a U.S. taxpayer's income?
NRA's ECI is taxed at the same rate as a U.S. taxpayer
Can interest and dividends earned by an NRA ever be considered as 'ECI' under specific circumstances?
Yes, if they are part of an individual's wizardry business outside the U.S.
Meghan Markle, being a U.S. citizen who moves to the U.K., falls under which classification when it comes to U.S. tax?
U.S. taxpayer
If Prince Harry becomes a resident of the U.S., how would he be classified for U.S. tax purposes?
U.S. taxpayer
What determines if an individual is considered a U.S. citizen?
Parentage or naturalization
How can an individual become a U.S. resident based on the substantial presence test?
Being physically present for at least 31 days in the current year
If Danny is long suspected of being a citizen of Mars, how does this impact his U.S. tax status?
He is considered a nonresident alien for U.S. tax purposes
What is a definitive criterion to be classified as a U.S. taxpayer?
Being a U.S. citizen or U.S. resident
Test your knowledge on the distinction between U.S. taxpayers and nonresident aliens based on criteria such as citizenship and residency status. Explore scenarios involving individuals like Meghan Markle and Prince Harry to determine their taxpayer status.
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