constructive receipt

constructive receipt definition - business

constructive receipt

Receipt of items considered to be income for a given tax period even though payment is not received until later. For example, a dividend paid and mailed on December 30, 2009, but not received by stockholders until after the first of the following year is considered taxable income for 2009 because the stockholders are considered to have constructive receipt of the dividend.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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