tems That Are not Income · Unrealized income Land valued at $20,000 beginning of year appreciates to $40,000 at end of year, the $20,000 increase in value is unrealized income and is not subject to taxItems That Are Not Income • Unrealized income • Land valued at $20,000 beginning of year appreciates to $40,000 at end of year, the $20,000 increase in value is unrealized income and is not subject to tax