1. Gross Income
... provide. Recovery of capital doctrine- no income subject to tax until the TP has recovered the capital invested. Collection of annuity contracts and installment payments received from sales of property must be allocated between recovery of capital and income. Fiscal year option not available to partnerships, S corp., and personal service corporations. Cash Receipts method- recognized in the ... income when earned, (1) all the events have occurred that fix the right to receive such income and (2) the amount to be received can be determined with reasonable accuracy. Title passes or servic...
- Word Count: 1743
- Approx Pages: 7
- Grade Level: High School