How is this money treated for income tax purposes

Assignment Help Taxation

Reference no: EM133335459

Assignment:

Could you please help me with this question and indicate if my answer is correct? If not why?

You receive payment for services to be provided next taxation year. How is this money treated for income tax purposes?

In my opinion letter, a is correct.

Options:

a) allocated to income over the period between the time the cash is received and the time the services are provided.

b) included in revenue in the taxation year the money is received, with an offsetting deduction for services to be provided in the next taxation year

c) income when the services are provided

d) income no later than 180 days after the end of the taxation year.

Reference no: EM133335459

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