Identify the rule that states that income has been realized when a taxpayer receives the income and there are no restrictions on the taxpayer's use of the income ,e.g., no obligation to repay the amount.

Identify the rule that states that income has been realized when a taxpayer receives the income and there are no restrictions on the taxpayer's use of the income ,e.g., no obligation to repay the amount.

Identify the rule that states that income has been realized when a taxpayer receives the income and there are no restrictions on the taxpayer's use of the income ,e.g., no obligation to repay the amount.


A. Claim of right

B. Constructive receipt

C. Return of capital principle

D. Wherewithal to pay

E. None of the choices are correct


Answer: A


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