If Someone Provides a Taxpayer with Either Property or Services

question 45

Multiple Choice

If someone provides a taxpayer with either property or services, economic performance occurs when

• A)The taxpayer actually uses the property.
• B)The property or services are actually provided.
• C)The liability to pay for the property or services exists.
• D)The taxpayer pays the other person for the property or services.

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Definitions:

Mentally Incompetent

A legal status indicating that an individual lacks the capacity to make decisions for themselves due to mental limitations or impairments.

Legally Binding

Refers to agreements or contracts that have legal force and are enforceable by law.

Disaffirm A Contract

The legal right of a party to renounce or reject a contract, which can be particularly relevant when one of the parties is a minor or otherwise lacks the capacity to contract.

Executory Contracts

Contracts under which both parties to the agreement have unfulfilled obligations that remain to be done.