1. Two of the following factors are not used in determining whether a taxpayer is a dealer vs. investor (circle both):

1.The nature and purpose of the acquisition of the property 2.The duration of the ownership;3.The extent and nature of the taxpayer's efforts to sell the property;4.The number, extent, continuity and substantiality of the sales; 5.The length of time that the taxpayer has been in the real estate business;6.The extent of subdividing, developing and improving the property;7.The type of taxpayer that is buying the property;8.The use of a business office and advertising for the sale of the property;9.The character and degree of supervision or control exercised by the taxpayer over any representative selling the property;10.The number of hours spent in real estate related activities;11.The time and effort the taxpayer actually devotes to the sale of the property.

2. The fractions rule is relevant to what type of taxpayer:

A. US individual who is a real estate professional. B. US individual who is not a real estate professional. C. Tax exempt organizationsD. Non-U.S. investors in real estate.E. All of the above.

3.Matching: Place the number below next to the corresponding business entity being described:

ECI _____

FDAP ______

FIRPTA _____

Portfolio Interest_____

Branch Profits Tax _____

1. Exception from FDAP withholding on interest income from certain portfolio debt investments.

2. 30% withholding tax on passive-type income (interest, dividends, etc..).

3. 30% tax imposed on a foreign corporation based on a deemed distribution of US branch operations.

4. Imposed on 1980 by the Foreign Investment in Real Property Tax Act.

5. A withholding tax on income that is effectively connected with a United States trade or business.

4.Most of the world uses a territorial tax system, but if a jurisdiction provides a tax credit for taxes paid to another jurisdiction, the system of taxation in that jurisdiction is most likely a _______________________ system of taxation.