A taxpayer who borrows money will include that amount borrowed in their gross income under the all-inclusive definition of income.Debt does not generate economic benefit.

Question

Quizplus · Accepted Answer

The statement is incorrect. Borrowed money is not included in gross income, as it is not considered an economic benefit. Only income received through employment, investments, or other types of economic activity are included in gross income.

A Taxpayer Who Borrows Money Will Include That Amount Borrowed