Our tax laws encourage taxpayers to ____ assets that have declined in value and ____ assets that have appreciated in value.

Question

Quizplus · Accepted Answer

Our tax laws encourage taxpayers to sell assets that have declined in value to realize a loss, which can be used to offset gains and reduce their tax liability. Conversely, they encourage taxpayers to keep assets that have appreciated in value to defer paying taxes on the gains until the assets are sold.

Our Tax Laws Encourage Taxpayers to ____ Assets That Have