Section 61 of the Internal Revenue Code defines income as income from whatever source derived unless otherwise excluded (2014, IRC Code). In determining income, several key concepts have evolved from this definition. Explain the following concepts, and provide at least one example of each. Explain which concept you think is most beneficial from a taxpayers point of view and which concept is most beneficial from IRSs point of view.

o Realized income

o Recognized income

o Return of capital doctrine

o Constructive receipt

o Tax benefit rule

o Wherewithal to pay doctrine