constructive receipt

Definition of "constructive receipt"
  1. It's a concept in tax law where a person is considered to have received income even though the funds haven't been physically received. This happens when the person has the ability to control or use the income
How to use "constructive receipt" in a sentence
  1. When funds are deposited into a person's savings account and are readily available for use, this could be considered as constructive receipt.
  2. Even though the bonus check has not been deposited into her account, because it is available for her to deposit, this might be a case of constructive receipt.
  3. When the employee was given the option to receive a paycheck at any time, the money became subject to constructive receipt.

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