A tax term which determines when a cash-basis taxpayer has received income. The taxpayer is liable for income that is not yet physically received but has been credited to the taxpayer's account or will be available to him at some future time.
Definition from Nolo’s Plain-English Law Dictionary
Income not physically received but treated by the tax code as if it had been received because it is accessible to the recipient. For instance, when a business receives a check from a client, it is considered constructive income since the check can be cashed.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:13 pm