Dr. Yomo, a cash basis taxpayer, received a check for $250 after banking hours on December 30, 2012, from a patient. Since Dr. Yomo could not deposit the check in his business checking account until January 2, 2013, the fee of $250 is not included in his income for 2012.

Question

Quizplus · Accepted Answer

Dr. Yomo has income when he receives the check. It does not matter whether or not he can cash it at his bank or grocery store or if he can sign it over to his creditors.

Dr Yomo, a Cash Basis Taxpayer, Received a Check for $250