Which of the tax concept(s) allow for the deferral of gains on nonrecognition transactions?
I.Capital Recovery Concept.
II.Ability to Pay Concept.

A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Question

Which of the tax concept(s) allow for the deferral of gains on nonrecognition transactions?
I.Capital Recovery Concept.
II.Ability to Pay Concept.
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A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Quizplus · Accepted Answer

The concepts allowing for the deferral of gains on nonrecognition transactions are not the Capital Recovery Concept or the Ability to Pay Concept. These concepts relate to different principles in taxation, not specifically to the deferral of gains on nonrecognition transactions.

Which of the Tax Concept(s) Allow for the Deferral of Gains