In general,an individual must recognize income on his or her tax return if the transaction has economic benefit,the transaction has reached a conclusion and the income from the transaction is tax-exempt income.

Question

Quizplus · Accepted Answer

Income must be recognized if it has economic benefit and has reached a conclusion, but tax-exempt income (such as certain municipal bond interest) does not need to be recognized on a tax return as taxable income.

In General,an Individual Must Recognize Income on His or Her