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:
“They tapped at my eyelids and touched my lips with an invitation to grief.
But it was no reason I had to go because they had to go.
Now up, my knee, to keep on top of another year of snow.”
—Robert Frost (1874–1963)
“And year by year the landscape grow
Familiar to the stranger’s child;”
—Alfred Tennyson (1809–1892)
“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)