Rachel paid $1,000 for supplies in 2017. In 2018, the vendor finds a $200 mistake on the invoice and refunds the overpayment to Rachel. Which of the following doctrines or concepts is the least helpful in determining how the 2018 transaction should be reported for tax purposes?

Question

Quizplus · Accepted Answer

The assignment of income doctrine is not applicable to this scenario as it pertains to situations where income is assigned to a taxpayer who did not earn it. In this scenario, Rachel is the rightful owner of the refund, so this doctrine is not relevant. The other choices may have some bearing on how the transaction should be reported for tax purposes.

Rachel Paid $1,000 for Supplies in 2017