Question

The following are a list of sources of income. List the additional realizable income and recognized gross income (if any) in the two columns. The tax year for all taxpayers ends on December 31.

Situation description	Realizable income in 2020	Recognizable income in 2020
The payroll department at work tells Stephen that his $12,500 bonus for services in 2019 is available for pick-up on December 15, 2019. Stephen goes picks it up on January 2, 2020.
Kevin and Stacy are married and file jointly. They purchased a house in 2015 for $325,000, and it has been their primary residence since. At the end of 2020, the house is estimated to be worth $619,000. They did not sell the house during the year.
Take the same setting with Kevin and Stacy above, except say that they sell the house on November 2, 2020 for the $619,000.
Eric accepted a job offer from Deloitte in Chicago, which required him to move from his current home in Fairfax, VA to Chicago on June 30, 2020. His moving costs of $2,000 were fully reimbursed by Deloitte by August 15, 2020.

Answer 1

		Realizable income in 2020	Recognizable income in 2020
1	The payroll department at work tells Stephen that
	his $12,500 bonus for services in 2019 is available
	for pick-up on December 15, 2019. Stephen goes	$12500
	picks it up on January 2, 2020.
2	Kevin and Stacy are married and file jointly. They
	purchased a house in 2015 for $325,000, and it has
	been their primary residence since. At the end of
	2020, the house is estimated to be worth $619,000	$619000
	They did not sell the house during the year.
3	Take the same setting with Kevin and Stacy above,
	except say that they sell the house on November 2,	$619000
	2020 for the $619,000.
4	Eric accepted a job offer from Deloitte in Chicago,
	which required him to move from his current home
	in Fairfax, VA to Chicago on June 30, 2020. His	$2000
	moving costs of $2,000 were fully reimbursed by
	Deloitte by August 15, 2020.

Realised income is that which is earned.

Recognised income is that which is recorded but not necessarily received.