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What Constitutes Income?

The Economic Benefit Doctrine, Constructive Receipt Doctrine, and Assignment of Income Doctrine help set the lines of demarcation between what constitutes income, when it must be recognized, and who must pay taxes on it. Which of these three doctrines is easiest to apply? Which is hardest? What does the need for these doctrines "say" about the nature of our income tax system?

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What Constitutes Income?
The Economic Benefit Doctrine, Constructive Receipt Doctrine, and Assignment of Income Doctrine help set the lines of demarcation between what constitutes income, when it must be recognized, and who must pay taxes
on it.

Which of these three doctrines is easiest to apply?
The easiest to apply is the Constructive Receipt Doctrine. You report income when you actually get it or ...

Solution Summary

Explains what constitutes income. Explains which of the three doctrines is the easiest and which is the hardest to apply. Brief and to the point.

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