Question

The tax concept and economic concept of income are in agreement on which of the following?

1) The fair rental value of an owner-occupied home should be included in income.
2) The increase in value of assets held for the entire year should be included in income for the year.
3) Rent income for 2016 collected in 2015 is income for 2015.
4) All of these.
5) None of these.

Answer 1

The tax concept and economic concept of income are in agreement on including the fair rental value of an owner-occupied home in income, including the increase in value of assets held for the entire year in income, and considering rent income collected in a previous year as income for that year.

Step-by-step explanation:

The tax concept and economic concept of income are in agreement on all of the following:

1. The fair rental value of an owner-occupied home should be included in income.
2. The increase in value of assets held for the entire year should be included in income for the year.
3. Rent income for 2016 collected in 2015 is income for 2015.