A Rationale for the Installment Sale Method Tax Rule Is

question 131

Multiple Choice

A rationale for the installment sale method tax rule is:

• A)Ability to pay.
• B)Equity and fairness.
• C)Simplicity.
• D)Revenue neutrality.

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Definitions:

Itemized Deductions

Expenses that taxpayers can subtract from their gross income to reduce the taxable income, including payments like mortgage interest, state taxes, and charitable contributions, as specified by the IRS.

Forfeit

The loss of any right, privilege, or property because of a breach of obligation or failure to meet a requirement.

Mileage Reimbursement

Compensation for fuel and wear-and-tear expenses for the use of a personal vehicle for business purposes, usually calculated by the mile.

Schedule C

A tax form used by sole proprietors to report income and expenses from a business.