Our tax laws encourage taxpayers to assets that have appreciated in value and assets that have declined in value.
A) sell; keep.
B) sell; sell.
C) keep; sell.
D) keep; keep.
E) None of these.

Question

Quizplus · Accepted Answer

Tax laws encourage taxpayers to keep assets that have appreciated in value to benefit from lower capital gains taxes upon sale and to sell assets that have declined in value to realize losses that can offset other gains or income.

Our Tax Laws Encourage Taxpayers to Assets That Have Appreciated