The statement "Property or services received are included in the taxpayer's gross income in the year of actual or constructive receipt by the taxpayer or agent regardless of whether the income was earned in that year" applies to the Cash receipts method of accounting.
The statement "Property or services received are included in the taxpayer's gross income in the year of actual or constructive receipt by the taxpayer or agent regardless of whether the income was earned in that year" applies to the Cash receipts method of accounting.
Under the Cash receipts method, income is recognized when it is received, whether in the form of cash, check, or any other type of payment. This means that income is included in the taxpayer's gross income in the year it is received, regardless of when it was earned.
On the other hand, the Accrual method of accounting recognizes income when it is earned, regardless of when it is actually received. This means that property or services received may be included in the taxpayer's gross income in the year they are earned, even if they are not actually received until a later year.