Freda is a cash basis taxpayer. In 2013, she negotiated her salary for 2014. Her employer offered
Question:
a. Did Freda actually or constructively receive $252,000 in 2014?
b. What could explain Freda's willingness to spread her salary over a longer period of time?
c. In December 2014, after Freda had earned the right to collect the $132,000 in 2015, the employer offered $133,000 to Freda at that time, rather than $132,000 in January 2015. The employer wanted to make the early payment so as to deduct the expense in 2014. Freda rejected the employer's offer. Was Freda in constructive receipt of the income in 2014? Explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
South Western Federal Taxation 2014 Comprehensive Volume
ISBN: 9781285180922
37th Edition
Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young
Question Posted: