The present federal income tax structure would:

Question

Quizplus · Accepted Answer

The present federal income tax structure taxes realized gains in the year that they are sold or otherwise disposed of. Accrued gains, on the other hand, are gains that have not yet been realized (i.e. the asset that has increased in value has not yet been sold or otherwise disposed of). Therefore, choice A is incorrect because all realized gains are subject to taxation. Choice B is incorrect because it suggests that only gains from certain years would be taxed, which is not the case. Choice D is incorrect because accrued gains from 1990 would have been taxed in 1990 if they were realized, and accrued gains from 1991 would be subject to taxation if they were realized in 1991.

The Present Federal Income Tax Structure Would