Which of the following constitutes constructive receipt in 2011?
a. A check received on December 29, 2011. The check was postdated January 5, 2012.
b. A check received on January 4, 2012. It had been mailed on December 29, 2011.
c. A rent check, received on December 31, 2011, by the manager of an apartment complex. The manager normally collects rent for the owner who is out of town.
d. A salary check received at 5:30 p.m. on December 31, 2011, after all banks are closed.
e. A paycheck received on December 26, 2011. The check was not honored by the bank because the employer's account did not have sufficient funds
Answer:
C and D are constructively received. A and E are not because funds are not available.
B is probably not considered constructively received assuming the taxpayer could not have "picked up" the check from the payor on December 29, 2011.
Tax
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