In 2011,Jimmy,a cash basis taxpayer,was offered $3,000,000 for signing a professional baseball contract.He rejected the offer in favor of $900,000 per year for 4 years beginning in 2011.He collected $900,000 in 2011.Jimmy did not constructively receive $3,000,000 in 2011.

Question

Quizplus · Accepted Answer

Jimmy did not actually receive the $3,000,000 in 2011, so he did not constructively receive it either. He only received $900,000 in 2011 from his new contract.

In 2011,Jimmy,a Cash Basis Taxpayer,was Offered $3,000,000 for Signing a Professional