Answered: Congress has chosen to exempt certain…

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Congress has chosen to exempt certain income from taxation such as

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter15: Choice Of Business Entity—other Considerations

Section: Chapter Questions

Problem 27DQ

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Question

Congress has chosen to exempt certain income from taxation such as

Rules by which an authority (usually a government) imposes a financial obligation on individuals or organizations within its domain. Property or transactions can be taxed. While taxes are primarily intended to fund the operation of a government, many tax laws are created to encourage or discourage certain behaviors by citizens or companies.

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The taxpayer pays taxes to the government on the income earned. The tax rules and regulations are changed over time there is certain income that is not taxable but can be taxed by modifying tax rules. It means the income which was not taxable is not taxable. The

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