Posted by J. Hyre in Ohio on November 04, 1998 at 07:37:39:
Assuming you are operating in your individual capacity (i.e.- not an LLC or corporation), you are probably a cash basis taxpayer. As such, income is recognized when you have unhindered control over the money. You usually have such control upon receipt of the money. NOTE: The IRS gets really mad if you delay receipt from say Dec 30 to Jan 2 so that the income falls in the next tax year. The “receipt” rule applies to when you COULD HAVE received the money in the case of such “artificial” delays.