You own an oil painting that increases in value by $12,000 but you do not sell the painting. The $12,000 is counted as ________ income.

Question

Quizplus · Accepted Answer

The $12,000 increase in value of the oil painting is considered part of economic income because it represents an increase in the owner's wealth. However, it is not considered taxable income until the painting is sold and the gain is realized.

You Own an Oil Painting That Increases in Value by $12,000