Daniel,an accrual basis taxpayer,collects the rent for December 2010 and January 2011 on December 1,2010.Daniel must include the December 2010 rent but not the January 2011 rent in his 2010 gross income.

Question

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Under the accrual basis of accounting, income is recognized when it is earned, regardless of when it is received. Therefore, Daniel must include both December 2010 and January 2011 rent in his 2010 gross income.

Daniel,an Accrual Basis Taxpayer,collects the Rent for December 2010 and January