Question

The constructive receipt doctrine does not apply to income the taxpayer is not yet entitled to receive even though the taxpayer could have contracted to receive the income at an earlier date.

a. True
b. False

Answer 1

The constructive receipt doctrine does not apply to income the taxpayer is not yet entitled to receive even though the taxpayer could have contracted to receive the income at an earlier date.

Step-by-step explanation:

The statement is true. The constructive receipt doctrine is a principle in tax law that states that income is taxable when it is actually received or made available to the taxpayer.

This means that even if a taxpayer could have contracted to receive income at an earlier date, they are not considered to have constructive receipt of that income until they are actually entitled to receive it. Therefore, the constructive receipt doctrine does not apply to income the taxpayer is not yet entitled to receive.