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Find the tax to the investor

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Reference no: EM132810075

A non-U.S. corporation investor held a real estate asset (a parcel of land) that that was purchased for $100,000,000 for 10 years and will sell it for $130,000,000. The investor gain on the sale of the asset is considered to in a business that is effectively connected to a U.S. trade or business (ECI).

Problem a. Compute the tax on the sale assuming that the investor held the asset directly (consider both ECI and branch profits tax)

Problem b. Compute the tax to the investor if held through US corporation (consider both entity level tax and FDAP tax on the distributions) with no treaty rates and a plan of liquidation in the year of sale

Reference no: EM132810075

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