Constructive receipt
Also called: constructive receipt of funds
A tax concept under which money may be treated as received even if it is not physically in the taxpayer’s hands, because it is available or controlled by the taxpayer.
What it means in practice.
Deferred-exchange safe harbors are designed in part to restrict the taxpayer’s rights to receive, pledge, borrow or otherwise obtain the exchange proceeds during the exchange period.
Why it matters.
Having the money “somewhere else” is not enough if the taxpayer still controls it.
Additional notes.
Deferred-exchange safe harbors are designed in part to restrict the taxpayer’s rights to receive, pledge, borrow or otherwise obtain the exchange proceeds during the exchange period.
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