On June 1, Don Receives a Rental House from His

question 61

Multiple Choice

On June 1, Don receives a rental house from his Uncle Sidney as a graduation present. The monthly rental on the house is $1,000. On June 25, the tenant pays Uncle Sidney the $1,000 rent payment for June by mistake. Which of the following concepts, constructs, or doctrines is the most relevant in determining the tax treatment of the $1,000 rental payment?

• A)Capital Recovery Concept.
• B)Assignment of Income Doctrine.
• C)Constructive Receipt Doctrine.
• D)Wherewithal-to-Pay Concept.
• E)Substance Over Form Doctrine.

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Definitions:

Uracil

(uracil) A nitrogenous pyrimidine base found in RNA.

Adenine

A purine nucleobase that pairs with thymine in DNA and uracil in RNA, essential for the structure of nucleic acids.

Thymine

A nitrogenous base found in DNA, pairing with adenine through two hydrogen bonds to assist in stabilizing the nucleic acid structures.

Citrulline

An amino acid that plays a significant role in the urea cycle, helping to eliminate ammonia from the body.