FOREIGN PROPERTY HOLDINGS (PG. 393-412)

Question 1

UNITED STATES PERSON

Answer 1

See pg. 395

Question 2

FOREIGN PERSON

Answer 2

See pg. 395

Question 3

ALIEN

Answer 3

An individual who is not a US citizen or US national

Question 4

US CITIZEN

Answer 4

See pg. 396

Question 5

US NATIONAL

Answer 5

An individual who owes his/her sole allegiance to the US, including all US citizens, along with some individuals who are not US citizens

Question 6

GREEN CARD HOLDER

Answer 6

Someone who is considered a permanent resident

Question 7

GREEN CARD TEST

Answer 7

The process of determining whether an individual who is resident, for US federal tax purposes, is a lawful permanent resident of the US at any time during the calendar year

Question 8

LAWFUL PERMANENT RESIDENT OF THE US

Answer 8

An individual, at any time, who has been given the privilege of residing permanently in the US as an immigrant

Question 9

SUBSTANTIAL PRESENCE TEST

Answer 9

See pg. 397/398

Question 10

CLOSER CONNECTION

Answer 10

An exception for the substantial presence test (see pg. 399/400)

Question 11

FOREIGN BANK AND ACCOUNTS REPORT (FBAR)

Answer 11

A report that must be filed by a US person, citizen, resident, corporation, partnership, limited liability company, trust and estate, of a financial interest in or signature or other authority over at least one financial account located outside the US, if the aggregate value of the foreign financial accounts exceed $ 10,000 at any time during the calendar year

Question 12

US SHAREHOLDER

Answer 12

A US person who owns directly, indirectly, or constructively 10% or more of the total combined voting power of all classes of stock entitled to vote in a foreign corporation

Question 13

CONTROLLED FOREIGN CORPORATION (CFC)

Answer 13

Any foreign (non-US) corporation where more than 50% of the voting power or more than 50% of the total value of the stock is owned directly or indirectly by a US shareholder, at any point dureing the corporation’s taxation year

Question 14

PASSIVE FOREIGN INVESTMENT COMPANY (PFIC)

Answer 14

A foreign (non-US) corporation, where morethan 75% of its gross income is passive income or at least 50% of the corporation’s average pecentage of assets held during the tax year produce passive income

Question 15

FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA)

Answer 15

A US act that requires foreign (non-US) financial instituions and certain other non-financial foreign entities to report foreign assets held by their account holders who are US taxpayers

Question 16

NON-RESIDENT ALIEN

Answer 16

An individual who is not a resident or citizen of the US and does not hold a US green card