Constructive Receipt
/kənˈstrʌktɪv rɪˈsit/
Definitions
- (n.) A tax and legal doctrine providing that income is considered received by a person when it is credited to their account or made available without restriction, even if not physically in possession.
Under constructive receipt, the taxpayer must report income credited to their account, even if not withdrawn.
Forms
- constructive receipt
Related terms
See also
Commentary
Constructive receipt is a key concept in tax law indicating availability rather than physical possession of income for recognizing receipt.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.