Doctrine of constructive receipt

Doctrine of constructive receipt,

Definition of Doctrine of constructive receipt:

  1. Taxation principle that requires the reporting of an income in the year it could have been received had the taxpayer so desired. For example (in arrangements where dividends are automatically reinvested) the taxpayer has to show them as income in the year they were reinvested, because he or she had the option of first receiving and then reinvesting them. Also called constructive receipt doctrine.

Meaning of Doctrine of constructive receipt & Doctrine of constructive receipt Definition