In 2017, Juan, a Cash Basis Taxpayer, Was Offered $3

question 44

True/False

In 2017, Juan, a cash basis taxpayer, was offered $3 million for signing a professional baseball contract. He counter offered that he would receive $900,000 per year for 4 years beginning in 2018. The team accepted the counteroffer. Juan constructively received $3 million in 2017.

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Definitions:

Lower Courts

Courts with limited jurisdiction, typically responsible for minor legal disputes and preliminary matters in a legal process.

Precedent

A legal principle, established in a previous case, that is either binding on or persuasive for a court when deciding subsequent cases with similar issues or facts.

Legal Realism

A school of legal thought that emphasizes the importance of real-world outcomes and the roles of social and economic conditions in shaping law, rather than abstract rules.

Cyberbullying

The use of digital platforms and devices to harass, threaten, embarrass, or target another person, typically involving repeated behavior aimed at causing distress.