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Income Tax Planning
Chapter 3: Fundamentals of Income Tax/ACCRUAL METHOD
Warren Academy Course SyllabusSyllabus Slides
Chapter Study Session

Chapter 3: Fundamentals of Income Tax

ACCRUAL METHOD

01.Core Concepts

• Income is earned when: • All events have occurred to fix taxpayer’s right to the income. • The amount can be determined with reasonable accuracy. • Claim of Right Doctrine • Amounts received are subject to tax even if in dispute. • If payment has not been received, and is disputed, no income recognition.