DENTISTTRANSACTIONS 2015 3

BOTH PATIENT AND DENTIST ARE CASH BASIS TAPAYERS
DR. BRUCKER ACCT 4110
DENTIST TRANSACTIONS - RECEIPTS
YEAR –DENTIST
INCOME
YEAR PATIENT
DEDUCTION
12/31/14 – FIXES TOOTH AND PAID $500 CASH
2014
2014
12/31/14 – FIXES TOOTH AND PAID WITH $500 CHECK DATED 12/31/14 NOT DEPOSITED IN BANK UNTIL 2015
2014
2014
12/31/14 – FIXES TOOTH AND PAID WITH $500 CHECK DATED 1/5/15 NOT DEPOSITED IN BANK UNTIL 2015
2015
2015
12/31/14 – FIXES TOOTH AND PAID WITH $500 CREDIT CARD 12/31/14 NOT PAID UNTIL 2015
2015
2014
12/31/14 – FIXES TOOTH AND PAID WITH PATIENT’S $500 PERSONAL NOTE DATED 12/31/14, PAYMENT DATE 6/30/15
2015
2015
12/31/14 – FIXES TOOTH AND PAID WITH PATIENT’S $500 1992 CHEVY TITLE DATED 12/31/14
2014
2014
12/31/14 – PATIENT’ PAYS $500 CASH FOR WORK TO BE DONE IN 2015 – PREPAYMENT- NO WORK YET - EXCEPTION
2014
2015
01/05/15 DENTIST OPENS MAIL AND RECEIVES CHECK FOR $500 FOR PATIENT WHOM HE FIXED TOOTH ON 2014. CHECK DATED DECEMBER 31, 2014 AND POST MARK IS 2014
2015
2014
01/05/15 DENTIST OPENS MAIL AND RECEIVES CHECK FOR $500 FOR PATIENT WHOM HE FIXED TOOTH ON 2014. CHECK DATED DECEMBER 31, 2014 AND POST MARK IS 2015
2015
2015

TAX YEARS
INDIVIDUAL
CALENDAR

C CORP
ANY YEAR

S CORP
CALENDAR

TRUST
CALENDAR

ESTATE
ANY YEAR

PARTNERSHIP
PRINCIPAL PARTNERS

DOCTRINE OF CONSTRUCTIVE RECEIPT
WHO DOES IT APPLY TO?
CASH BASIS – YES
ACCRUAL - NO
MRS. X HAS A SAVINGS ACCOUNT WITH PNC BANK. DURING THE TAX YEAR 2014 SHE DOES NOT WITHDRAW ANY MONEY. ON JANUARY 31, 2015 SHE RECEIVES A FORM 1099-INT FROM THE BANK INDICATING $300 OF INTEREST WAS CREDITED TO HER SAVINGS ACCOUNT DURING 2014. DOES SHE HAVE INTEREST INCOME FOR 2014 EVEN THOUGH SHE NEVER
WITHDREW THE INTEREST? YES – DOCTRINE OF CONSTRUCTIVE RECEIPT
DON’T NEED DOCTRINE OF CONSTRUCTIVE RECEIPT FOR ACCRUAL BASIS TAXPAYERS. THEY HAVE INCOME WHEN ALL EVENTS HAVE OCCURRED TO FIX THE RIGHT TO THE INCOME.
IS THERE A DOCTRINE OF CONSTRUCTIVE PAYMENT FOR CASH BASIS TAXPAYERS? NO THE AMOUNT MUST BE PAID TO DEDUCT!