XYZ, a Limited Liability Company which was formed under Maryland law but is 100% owned by citizens and residents of France. It is planned to buy US real estate for rental to renters. Discuss tax issues related to these and potential tax advice.
a) XYZ would be subject to US federal income tax on its rental income.
b) XYZ would be exempt from US federal income tax due to its foreign ownership.
c) XYZ may be subject to state and local taxes in addition to federal taxes.
d) XYZ would not be subject to any taxes in the US due to its foreign ownership.