U.S. Taxation of Nonresident Aliens Sample Clauses

U.S. Taxation of Nonresident Aliens. The taxation of U.S. rental income of a nonresident depends on whether the foreign owner of the 2 property engaged in a "U.S. trade or business”. The United States taxes any income received by a foreign investor efficiently connected with their U.S. trade or business on a net basis. While there is no formal definition of "trade or business," previous I.R.S. rulings demonstrate that it is met by "considerable, continuous, and regular" economic activities within the United States. Rental income generated by U.S. property fails to rise to this classification for foreign investors. Generally, this form of income is typically deemed passive income and is subject to a flat 30 percent gross income. However, investors can make an election under I.R.C. § 871(d) to treat rental income as efficiently connected income. The election allows the Turkish investor to be taxed at graduated rates and take business deductions before paying the tax. Expenses including mortgage interests, real property taxes, maintenance, repairs, and deprecation may be deducted in determining net taxable income. The Turkey Tax Agreement does not contain a specific provision allowing for the net election like similar tax treaty agreements. Despite the absence of this disclosure, Turkish investors mustn't forget this option is available to them. In making this election, the investor agrees to prepare a U.S. tax return to report rental income earned. The taxpayer will need to apply for an Individual Taxpayer Identification Number (ITIN)using Form W-7 and submit the document with the tax return. In addition, the investor must complete and submit Form W-8ECI to the withholding agent. Although the net election requires additional work, it is more advantageous to the investor as it allows the deduction of necessary expenses incurred while operating the property and for the remainder to be taxed at likely lower ordinary income tax rates.

Related to U.S. Taxation of Nonresident Aliens

Miscellaneous a. A Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from the registered owner of such Registrable Securities.
General All payments to be made by the Borrower shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly provided herein, all payments by the Borrower hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the Administrative Agent’s Office in Dollars and in immediately available funds not later than 2:00 p.m. on the date specified herein. The Administrative Agent will promptly distribute to each Lender its Applicable Percentage (or other applicable share as provided herein) of such payment in like funds as received by wire transfer to such Lender’s Lending Office. All payments received by the Administrative Agent after 2:00 p.m. shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue. If any payment to be made by the Borrower shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest or fees, as the case may be.
Notices All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given (i) if delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, or (ii) mailed by certified or registered mail with postage prepaid, on the third (3rd) business day after the date on which it is so mailed:
Severability Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
Governing Law This Agreement shall be governed by and construed in accordance with the laws of the State of New York.
Definitions As used in this Agreement, the following terms shall have the following meanings:
Indemnification In the event any Registrable Securities are included in a Registration Statement under this Agreement:
Termination This Agreement may be terminated at any time prior to the Closing:
Insurance The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including, but not limited to, directors and officers insurance coverage at least equal to the aggregate Subscription Amount. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase in cost.
WHEREAS the Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"); and