Examples of income which are constructively received include all of the following except
A)interest credited to a savings account.
B)a check received after banking hours.
C)a paycheck received from employer,when employer does not have funds in the bank to cover the check.
D)dividends available on December 31; unclaimed dividends will be mailed out.

Question

Quizplus · Accepted Answer

Income is considered constructively received when it's credited to an account or made payable to a taxpayer without any substantial limitations or restrictions. Interest credited to a savings account, a check received after banking hours, and unclaimed dividends available on December 31 are all examples of income that are constructively received. However, a paycheck received from an employer when the employer does not have funds in the bank to cover the check is not considered constructively received income because the taxpayer cannot access or use the funds until the check has cleared.

Examples of Income Which Are Constructively Received Include All of the Following