In 2019, 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 four years beginning in 2020.The team accepted the counteroffer.Juan constructively received $3 million in 2019.

Question

Quizplus · Accepted Answer

Although Juan negotiated and agreed to receive $900,000 per year for four years, the actual payments did not begin until 2020. Therefore, he did not constructively receive the $3 million in 2019.

In 2019, Juan, a Cash Basis Taxpayer, Was Offered $3