Rationale for nonrecognition of property transactions exists because of which concept(s) of taxation?
I.Wherewithal-to-Pay Concept.
II.Constructive receipt Doctrine.

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

Question

Rationale for nonrecognition of property transactions exists because of which concept(s) of taxation?
I.Wherewithal-to-Pay Concept.
II.Constructive receipt Doctrine.
​
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

Nonrecognition of property transactions is based on the concept of the "wherewithal-to-pay" principle. This principle suggests that taxes should only be paid when there is sufficient means to pay. The constructive receipt doctrine, on the other hand, is related to the timing of income recognition and does not directly influence the nonrecognition of property transactions.

Rationale for Nonrecognition of Property Transactions Exists Because of Which