Constructive Receipt - Timing

[Strongsilence-CPA]

I wrote a check on 12/1/2023, and my vendor received it prior to 12/31/2023.  He called me in February 2024 and said he lost it. so, I cancelled the previous check and issued a new one in 2024.  This is deductible in 2023 under constructive receipt doctrine, right?

[IRonMaN]

Yup.  You provided a replacement check, not a new payment.

[qbteachmt · Accepted solution]

"Constructive Receipt" isn't really what you are asking.

It's about perspective. You incurred the expense when you paid. Constructive receipt as income is his perspective, in this case.

You typically would never know when someone got your check. You wrote it and sent it in Dec, and that's what matters for your perspective. For all you know, they went to Mexico until Feb, came back and caught up on the mail and banking.

[PATAX]

I wonder what year the recipient is going to pick it up as income?