For federal income tax purposes, the doctrine of constructive receipt is used to determine when a cash-basis taxpayer has received gross income. A taxpayer is subject to tax in the current year if he or she has unfettered control in determining when items of income will or should be paid. Unlike actual receipt, constructive receipt does not require physical possession of the item of income in question.
Read more about Constructive Receipt: Background, History, Impact
Famous quotes containing the words constructive and/or receipt:
“The desert is a natural extension of the inner silence of the body. If humanity’s language, technology, and buildings are an extension of its constructive faculties, the desert alone is an extension of its capacity for absence, the ideal schema of humanity’s disappearance.”
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