In 2013,Juan,a cash basis taxpayer,was offered $3 million for signing a professional baseball contract.He counteroffered that he would receive $900,000 per year for 4 years beginning in 2014.The team accepted the counteroffer.Juan constructively received $3 million in 2013.

Question

Quizplus · Accepted Answer

Juan only made a counteroffer for annual payments starting in 2014, therefore he did not constructively receive the $3 million in 2013.

In 2013,Juan,a Cash Basis Taxpayer,was Offered $3 Million for Signing