What are the federal income tax withholding requirements

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Question - Martinho is a citizen of Brazil and lives there year-round. He has invested in a plot of Illinois farmland with a tax basis to him of $1,000,000. Martinho has no other business or investment activities in the United States. He is not subject to the alternative minimum tax.

a. Upon sale of the land for $1,500,000 to Emma, an Illinois individual, what are the Federal income tax consequences to Martinho?

b. What are the Federal income tax withholding requirements with respect to Martinho's sale? Who pays the withheld amount to the U.S. Treasury?

Reference no: EM132932635

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