Chapter 9 Flashcards
1
Q
Outbound Taxation
A
U.S. tax effects when a U.S. person begins an investment or business activity outside the United States.
2
Q
Inbound Taxation
A
U.S. tax effects when a non-U.S. person begins an investment or business activity in the United States.
3
Q
US persons earning US-source income are taxed using…
A
only the domestic provisions of the IRC
4
Q
Non-US persons earning foreign-source income are not within the…
A
taxing jurisdiction of the US unless this income is connected to a US trade or business
5
Q
Territorial Taxing System
A
System under which only the taxable income generated within the country’s borders is subject to tax there, regardless of who the taxpayer is
6
Q
A
