Because profits from stock and real estate transactions are taxed only when they are sold, the wealthy-especially the nonworking wealthy-escape taxation on the vast majority of their assets.

Question

Quizplus · Accepted Answer

The wealthy can defer taxes on their gains from stocks and real estate until they sell these assets, allowing them to accumulate wealth over time without immediate tax consequences, unlike regular income which is taxed annually.

Because Profits from Stock and Real Estate Transactions Are Taxed