All of the following are considered examples of \"constructive receipt\" of inco

Question

All of the following are considered examples of "constructive receipt" of income, except:
a. an employee was informed that her paycheck was available, but she did not pick it up.
b. a contractor earned income that was received by his agent, but was not received by the contractor.
c. someone bought a 9-month certificate of deposit in November 2004. It earned $200 interest in 2004, she can withdraw the principal and interest in 2004 if she pays a penalty on one month's interest ($100).
d. a payment on a sale of real property placed in escrow pending settlement at which time title would convey.
please do not guess

Explanation / Answer

All of the following are considered examples of "constructive receipt" of income, except: d. a payment on a sale of real property placed in escrow pending settlement at which time title would convey. Explanation : Doctrine under which a taxpayer is required to include in gross income amounts that, though not actually received, are deemed received during the tax year. Thus there is constructive receipt when income is made available to the taxpayer. For example, a lawyer performs services and receives a check for payment in December, but waits until January to deposit it and record it on business records. He is required to report it on his tax return in the year of the December receipt. Here the money is n escrow account with no date avialble to it beng avalable to seller

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