When is Gross Income Reportable: Accounting Methods: Cash Method

Question 1

Cash Method

Answer 1

When taxpayer actually or constructively receives asset

Question 2

Constructive Receipt

Answer 2

been set aside for taxpayer, credited to her account, otherwise made available so that he can draw upon it at any time.

Question 3

Deduction

Answer 3

Are taken when taxpayer ACTUALLY PAYS amount