Can yana take advantage of the participation exemption

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Question - Yana is a citizen and resident of Greece. She owns an apartment building, which is taxed as a calendar year sole proprietorship, in downtown Salt Lake City. The apartment building generates a net profit of approximately $100,000 per year.  Yana's tax advisor in Greece has told her that the income generated by the apartment building is fully taxable under Greek income tax laws.  Yana comes to you, seeking the following advice.

(a) Will I, as a citizen and resident of another country (Greece), be required to pay U.S. federal income taxes on the rental income? Why or Why not?

(b) Can Yana take advantage of the participation exemption on her U.S. income tax return?  Why or why not?

(c) Yana needs the $100,000 per year income, but asks if there is anything she could do to be certain that none of her income will be subject to federal income taxation in the U.S.?

Reference no: EM132922368

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