Which of the following is true regarding tax-advantaged assets?
A)They are typically subject to excise taxes to account for their low explicit taxes.
B)A corporate bond is typically considered a tax-advantaged asset.
C)They are often subject to implicit taxes.
D)A corporate bond is typically considered a tax-advantaged asset and They are often subject to implicit taxes are correct but not They are typically subject to excise taxes to account for their low explicit taxes.
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

Tax-advantaged assets are investments that provide tax benefits to investors, such as tax-deferred or tax-exempt status. However, despite these benefits, they are often subject to implicit taxes, such as lower returns due to the costs associated with maintaining the tax-advantaged status. Option A is untrue because tax-advantaged assets are actually subject to lower explicit taxes, not higher taxes in the form of excise taxes. Option B is untrue because corporate bonds are not typically considered tax-advantaged assets.

Which of the Following Is True Regarding Tax-Advantaged Assets