Question

Alanded on seves prepaid rents required to sport mat amount as gross income when the payment is received Why would Congress choose to do the? What proniem does this create for the taxpayer

A. Congress tres prepaid rental income to contect more laces hom a taxpayer by increasing their tax backed with the additional income. The problems causes the taxpayer is consistent taxable income from year to year and increases the tsk of an audit Congress toes prepaid rental income due to the concem that taxpayers who spend the money will be unable to pay the box when it comes due. The problee created for taxpayers is that they are taxed before they incur related expenses, such as repairs insurance and depreciation: Therefore there is a
B. Congress toes prepaid rental income due to the concem that taxpayers who spend the money will be unable to pay the box when it comes due. The problee created for taxpayers is that they are taxed before they incur related expenses, such as repairs insurance and depreciation: Therefore there is a matching of revenue and ex
C. Congrass taxes prepaid antal intera due to numerous andiones not reporting this income in the folowing tax year. The problem create for taxpayers in that they are taxed before they incurated expenses and these expenses are then disallowed in the following tax year by the federal government
D. Congress taxes prepaid rental income to regulate federal cash into The problem created for taxpayers is that they are taxed before they our related expenses es meals and login club membership dues and depreciation. Therefore, there is a mesmatching of revenue and expense

Answer 1

Congress taxes prepaid rental income due to the concern that taxpayers who spend the money will be unable to pay the tax when it comes due. The problem created for taxpayers is that they are taxed before they incur related expenses, such as repairs, insurance, and depreciation.

Step-by-step explanation:

Congress taxes prepaid rental income due to the concern that taxpayers who spend the money will be unable to pay the tax when it comes due. The problem created for taxpayers is that they are taxed before they incur related expenses, such as repairs, insurance, and depreciation. This creates a mismatching of revenue and expenses.