Dentify the rule that states that income has been realized when a taxpayer receives the income and there are no restrictions on the taxpayer's use of the income (e. g., no obligation to repay the amount)

Constructive receipt rule

Explanation:

C"onstructive receipt is an accounting concept that determines when income must be taken, for both tax and accounting purposes. It's especially important at the end of a year, because when you receive income affects your taxes for the year.

The principle of constructive receipt is determined by when the person who receives the income had control over it. An individual or company is considered to have control over income when it is credited to that person or company. Basically, it's when you could spend that income if you wanted, even if you don't spend it. "

Reference: Murray, Jean. “What Is Constructive Receipt of Income?” The Balance Small Business, The Balance Small Business, 4 Apr. 2019