Certified Payroll Professional Practice Exam 2025 - Free CPP Practice Questions and Study Guide

Question: 1 / 400

What does the term "Constructive Receipt" refer to in income tax context?

Physical possession of income

Receipt of digital payments

Receiving income without restriction

"Constructive Receipt" in an income tax context refers to the concept where income is considered to be received by an individual even if they do not have physical possession of it, as long as it is made available to them without any restrictions. This means that the individual has control over the income and could access it if they wished to do so, even if they haven't actually taken possession of it yet.

Options A, B, and D are not correct because they focus on the method of receipt (physical possession, digital payments, or direct deposit) rather than the concept of constructive receipt, which is about the availability and lack of restrictions on income.

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Direct deposit

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