Constructive receipt represents the principle that cash basis taxpayers should be taxed on income when it is made available to them without substantial restrictions.

Question

Aydin Cuevas

Business

28 February, 04:55

Constructive receipt represents the principle that cash basis taxpayers should be taxed on income when it is made available to them without substantial restrictions.

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Stanley Sellers · Answer 1

If this is a true or false question, then the answer is definitely true.

This definition you wrote above does indeed refer to constructive receipt. It is used to determine whether a tax payer has received a gross income and whether and when he or she should pay their taxes, as well as to calculate how much they are supposed to pay.