Estimated taxes - quarters


M

martin lynch

Hi, I am in a program similar to Avon... collect commision checks once
in a while.

For purposes of calculating my estimated taxes for a specific quarter,
do I use the date the checks were issued, or the date on which I
cashed them?
 
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A

Arthur Kamlet

Hi, I am in a program similar to Avon... collect commision checks once
in a while.

For purposes of calculating my estimated taxes for a specific quarter,
do I use the date the checks were issued, or the date on which I
cashed them?

Assuming the business is on a cash basis including cost of goods sold,
you recognize income on the date you constructively receive it. If today
a check arrives in your mailbox, but you put it on the table and don't open
the envelope until next tax quarter, you have constructively received it
today.
 

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