On December 30,2016,Robert agreed to repair a damaged house wall and started to work on that date.He will finish and get paid for the job in January of 2017.Robert needs to record the income received from his work in the year:

Question

Quizplus · Accepted Answer

Since Robert will not receive payment until January of 2017, he should report the income in that tax year. Even though he began the work in December of 2016, the payment was not received until the following year, so it should not be reported on his 2016 taxes.

On December 30,2016,Robert Agreed to Repair a Damaged House Wall