Freda is a cash basis taxpayer. In 2014, she negotiated her salary for 2015. Her employer offered
Question:
a. Did Freda actually or constructively receive $252,000 in 2015?
b. What could explain Freda's willingness to spread her salary over a longer period of time?
c. In December 2015, after Freda had earned the right to collect the $132,000 in 2016, the employer offered $133,000 to Freda at that time, rather than $132,000 in January 2016. The employer wanted to make the early payment so as to deduct the expense in 2015. Freda rejected the employer's offer. Was Freda in constructive receipt of the income in 2015? Explain.
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Related Book For
South Western Federal Taxation 2015
ISBN: 9781305310810
38th Edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young
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