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:
“Euphemisms are not, as many young people think, useless verbiage for that which can and should be said bluntly; they are like secret agents on a delicate mission, they must airily pass by a stinking mess with barely so much as a nod of the head, make their point of constructive criticism and continue on in calm forbearance. Euphemisms are unpleasant truths wearing diplomatic cologne.”
—Quentin Crisp (b. 1908)
“You must think I am a high-priced man.... Fifteen dollars is enough for the job. I send you a receipt for fifteen dollars, and return to you a ten-dollar bill.”
—Abraham Lincoln (1809–1865)