Daniel,an accrual basis taxpayer,collects the rent for December 2011 and January 2012 on December 1,2011.Daniel must include the December 2011 rent but not the January 2012 rent in his 2011 gross income.

Question

Quizplus · Accepted Answer

Accrual basis taxpayers must recognize income when it is earned, regardless of when it is received. Therefore, Daniel must include both December 2011 and January 2012 rent in his 2011 gross income.

Daniel,an Accrual Basis Taxpayer,collects the Rent for December 2011 and January