RE: I think that means you get taxed, not on what you made but what you COULD have made.
Suppose I bought stocks in Apple and held on to the stock for several years. Now I calculate that I made a profit of about $50,000 from my initial investment, but prefer to still hold on to the stock ( i.e., I have not sold the stocks at all ).
What does imputed income mean for me?
An awful monster would be unleashed in the name of fairness.