Which of the following statements is FALSE?
A) Unrealized capital gains are taxable.
B) Realized capital gains are taxable.
C) Tax-exempt investments are attractive to individuals with high tax liabilities.
D) Returns comparisons should be made on an equivalent tax basis.
E) Tax exempt investors prefer tax exempt investments.

Question

Quizplus · Accepted Answer

Unrealized capital gains are not yet realized, meaning they have not been converted into cash or sold, and thus are not yet taxable.

Which of the Following Statements Is FALSE