Deferral of capital gains tax does notI) mean that the investor doesn't need to pay taxes until the investment is sold.II) allow the investment to grow at a faster rate.III) mean that you might escape the capital gains tax if you live long enough.IV) provide a tax shelter for investors.
A) III
B) II
C) I, II, and V
D) II, III, and IV

Question

Quizplus · Accepted Answer

Deferral of capital gains tax means that the investor doesn't need to pay taxes until the investment is sold (I), allows the investment to grow at a faster rate (II), and provides a tax shelter for investors (IV). However, it does not mean that you might escape the capital gains tax if you live long enough (III).

Deferral of Capital Gains Tax Does NotI) Mean That the Investor