Monday, December 10, 2018

Constructive Receipt of Income

If your business receives a payment from a client on December 30 but you wait to deposit it in January, do you have to declare that income in 2018? Yes you do because you have control over the funds. You can choose when to deposit the money. One way to defer income to 2019 is by delaying your December billing so you won't receive payments until January.

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