Constructive receipt
Certified Financial Planner glossary · Certified Financial Planner
Definition
The doctrine taxing income when it is credited, set apart, or made available, whether or not actually received.
Constructive receipt in plain English
A year-end bonus check is ready at the payroll window on December 31, yet the employee waits until January 2 to pick it up. Constructive receipt still pulls the income into the earlier year because amounts credited, set apart, or made available are taxed even if not physically taken. Substantial limitations can postpone inclusion; a voluntary delay usually cannot. Scan cash-method stems for "available without restriction" wording before you pick the tax year.
Related Certified Financial Planner terms
Certified Financial Planner practice questions · Certified Financial Planner flashcards · Certified Financial Planner study guide