Year of Inclusion
A taxpayer must include income as part of taxable income in the year recognized under the taxpayer's method of accounting. Generally, a taxpayer using the cash method of accounting (cash basis taxpayer) recognizes income when received. A taxpayer using the accrual method (accrual basis taxpayer) recognizes income when earned. Income is generally considered earned:
- on sales of property when title to the property passes to the customer, and
- on performance of services when the services are performed.
Read more about this topic: Gross Income
Famous quotes containing the words year of, year and/or inclusion:
“We have good reason to believe that memories of early childhood do not persist in consciousness because of the absence or fragmentary character of language covering this period. Words serve as fixatives for mental images. . . . Even at the end of the second year of life when word tags exist for a number of objects in the child’s life, these words are discrete and do not yet bind together the parts of an experience or organize them in a way that can produce a coherent memory.”
—Selma H. Fraiberg (20th century)
“Still let my tyrants know, I am not doomed to wear
Year after year in gloom, and desolate despair;
A messenger of Hope comes every night to me,
And offers for short life, eternal liberty.”
—Emily Brontë (1818–1848)
“Belonging to a group can provide the child with a variety of resources that an individual friendship often cannot—a sense of collective participation, experience with organizational roles, and group support in the enterprise of growing up. Groups also pose for the child some of the most acute problems of social life—of inclusion and exclusion, conformity and independence.”
—Zick Rubin (20th century)