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Klaus, a German citizen and non-resident for US tax purposes, owns a small business in New York City that imports and sells accessories for various German-manufactured automobiles. Once a month, the business
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13 votes
13 votes
Klaus, a German citizen and non-resident for US tax purposes, owns a small business in New York City that imports and sells accessories for various German-manufactured automobiles. Once a month, the business pays its net profits back to Klaus in Germany. The income from this business will be classified as:____.

a. effectively connected income.
b. fixed and determinable.
c. annual or periodic income.

User Agos
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1 Answer

18 votes
18 votes
The answer is (a.) effectively connected income
User Cote Mounyo
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