An investor who is a non-resident for US tax purposes who buys stock of a US company is engaging in tax planning that uses the
a.entity variable
b.time period variable
c. jurisdiction variable
d. character variable
The correct answer is c. jurisdiction variable.
Tax planning involves making strategic decisions and taking advantage of specific tax jurisdictions to minimize tax liabilities. In this case, the investor who is a non-resident for US tax purposes is considering the tax consequences of buying stock in a US company.
By purchasing stock of a US company as a non-resident, the investor is subject to tax rules and regulations associated with the US tax jurisdiction. The choice of jurisdiction is critical because it determines the applicable tax rates, deductions, exemptions, and other factors that may impact the investor's tax liability.
Therefore, the jurisdiction variable is the key consideration in this scenario as it directly affects the investor's tax planning strategy.