In which of the following will the Constructive Receipt Doctrine require reporting income in 2016?
I.Cornell's December 2017 salary check is withheld until January 15,2018,because the employer does not have sufficient cash to cover its December payroll.
II.Donnie is an employee of Holt Corporation.The corporation regularly mails payroll checks to employees to arrive on or before the last day of each month.Donnie's check arrives in the mail at his house on December 31,2017.However,Donnie was vacationing in Cancun and did not return until January 8,2018.Donnie deposited the check into his account the next day.
III.In December 2017,Cory signs a contract to play basketball for the Rhythms.He receives a signing bonus of $2,000,000 to be paid over 5 years beginning in 2018.His regular salary of $800,000 will be paid monthly during the season that begins in 2018.

Question

In which of the following will the Constructive Receipt Doctrine require reporting income in 2016?
I.Cornell's December 2017 salary check is withheld until January 15,2018,because the employer does not have sufficient cash to cover its December payroll.
II.Donnie is an employee of Holt Corporation.The corporation regularly mails payroll checks to employees to arrive on or before the last day of each month.Donnie's check arrives in the mail at his house on December 31,2017.However,Donnie was vacationing in Cancun and did not return until January 8,2018.Donnie deposited the check into his account the next day.
III.In December 2017,Cory signs a contract to play basketball for the Rhythms.He receives a signing bonus of $2,000,000 to be paid over 5 years beginning in 2018.His regular salary of $800,000 will be paid monthly during the season that begins in 2018.
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Quizplus · Accepted Answer

The Constructive Receipt Doctrine requires income to be reported when it is made available to the taxpayer without substantial limitations. In statement II, Donnie's check was available to him on December 31, 2017, even though he did not physically receive it until January 2018. Therefore, it must be reported as income for 2017.

In Which of the Following Will the Constructive Receipt Doctrine