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?
Estimated taxes - quarters
Jul 17, 2010
1 Replies
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.
Join the Discussion
Have something to add? Share your thoughts — no account required.
Didn't find your answer?
Ask the community — no account required