a Belgium corporation, received the following sources of income during 2015: $10

Question

a Belgium corporation, received the following sources of income during 2015: $10,000 interest income from a loan to its 100 percent owned Dutch subsidiary $20,000 dividend income from its 100 percent owned U.S. subsidiary $30,000 royalty income from its Irish subsidiary for use of a trademark outside the United States $40,000 rent income from its Canadian subsidiary for use of a warehouse located in Wisconsin $5,000 capital gain from sale of stock in its 40 percent owned New Zealand joint venture. Title passed in New Zealand. What amount of U.S. source income does Gouda have in 2015?

Explanation / Answer

According to taxation laws, If we accured income from US or receipt in US then that income recognised as source of income of US.

In this question Belgium Corporation is not located in united state and its all subsdiary and joint venture outside the united state.Only one 100 percent owned US subsidiary is us subsdiary which income recognised as US source of income.

So $20000 dividend income is from 100 percent owned US subsdiary is recognised as US source of income.

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