Which of the following is a tax expenditure?

Question

Quizplus · Accepted Answer

Tax expenditures refer to revenue losses attributable to provisions of the federal tax laws which allow a special exclusion, exemption, or deduction from gross income or which provide a special credit, a preferential rate of tax, or a deferral of tax liability. Lower tax rates for stock and real estate profits fall under this category as they allow for a preferential rate of tax, thereby reducing the tax liability for individuals or entities that benefit from these lower rates.

Which of the Following Is a Tax Expenditure