The tax concept and economic concept of income are in agreement on which of the following:
A)The fair rental value of an owner-occupied home should be included in income.
B)The increase in value of assets held for the entire year should be included in income for the year.
C)Rent income for 2018 collected in 2017 is income for 2017.
D)All of these.

Question

Quizplus · Accepted Answer

For tax purposes, income is recognized when it is received, so rent income collected in advance is considered income in the year it is received, aligning with the economic concept of income.

The Tax Concept and Economic Concept of Income Are in Agreement