Multiple Choice
Which of the following statements regarding exclusions and/or deferrals is false?
A) Exclusions are favorable because taxpayers never pay tax on income that is excluded.
B) Interest income from municipal bonds is excluded from gross income.
C) Deferrals are income items taxpayers realize in one year but include in gross income in a subsequent year.
D) An income item need not be realized in order to qualify as an exclusion item.
Correct Answer:
Verified
Correct Answer:
Verified
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