Which of the following statements regarding realized income is True?
A) Taxpayers need not include realized income in gross income unless a specific provision of the tax code requires them to do so.
B) Realized income requires some type of transaction or exchange with a second party.
C) Once income is realized it may not be excluded from gross income.
D) None of these statements is True.

Question

Quizplus · Accepted Answer

Realized income requires a transaction with a second party in which there is a change in property rights between parties.

Which of the Following Statements Regarding Realized Income Is True