Which of the following statements is true?

Question

Quizplus · Accepted Answer

Realized capital gains are those that are actually realized, meaning an asset has been sold at a higher price than it was purchased. These gains are taxed by most countries. On the other hand, implicit capital gains are those that are not realized but are still considered gains in value. For example, if the value of a stock increases but it is not sold, this increase in value is considered an implicit gain. These gains are not taxed until the asset is sold and the gain is realized.

Which of the Following Statements Is True