Problem:
Section 61 of the IRS Code defines income as "income from whatever source derived unless otherwise excluded." In determining income, several key concepts have evolved from this definition. Explain the following concepts and provide at leas one example of each. Explain which concept you think is most beneficial from a taxpayer's point of view and which concept is most beneficial from the IRS's point of view.
1. Realized income
2. Recognized income
3. Return of capital doctrine
4. Constructive receipt
5. Tax benefit rule
6. Wherewithal to pay doctrine