Question

T/F: Lee, a citizen of Korea, is a resident of the U.S. Any rent income Lee receives from land he owns in Korea is not subject to the U.S. income tax.

Answer 1

The statement is false as U.S. tax laws require Lee to pay income tax on worldwide income, including rent income from Korea.

Step-by-step explanation:

The statement provided is false. According to the U.S. tax laws, if Lee is considered a resident alien for tax purposes, then he is subject to U.S. income tax on his worldwide income. This includes any rent income he receives from property in Korea. The U.S. taxes its residents and citizens on their global income, which means that regardless of where the income originates, it may still be taxable by the U.S. Internal Revenue Service (IRS).