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In the current year Jose, a cash basis taxpayer, was offered $5 million for signing a professional baseball contract. He countered asking that he receive
In the current year Jose, a cash basis taxpayer, was offered $5 million for signing a professional baseball contract. He countered asking that he receive $1,100,000 a year for 5 years beginning in the current year. The team accepted the counteroffer. In accordance with the contract Jose received $1,100,000 in the current year. For tax purposes, how much income is he treated as constructively receiving in the current year?
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