Absent any special tax treatment, the claim of right doctrine could be applied to make the following income taxable in 2012:
Payments received during October 2012 by a skiing corporation for season passes (November, 2012 through April, 2012).The corporation is on the accrual basis, and its tax year is the calendar year.

Question

Quizplus · Accepted Answer

The claim of right doctrine states that income is taxable when it is received, regardless of whether it is later determined that the taxpayer was not entitled to the income. In this case, the skiing corporation received payments for season passes in October 2012, so under the claim of right doctrine, the income would be taxable in 2012.

Absent Any Special Tax Treatment, the Claim of Right Doctrine