Question

If someone provides a taxpayer with either property or services, economic performance occurs when

A. The taxpayer actually uses the property.
B. The property or services are actually provided.
C. The liability to pay for the property or services exists.
D. The taxpayer pays the other person for the property or services.

Answer 1

The economic performance occurs when the property or services are actually provided.

Step-by-step explanation:

Economic performance occurs when the property or services are actually provided. When someone provides a taxpayer with property or services, the economic performance is considered to have taken place at the moment of provision. The taxpayer does not need to use the property or pay for it for economic performance to occur. Therefore, option B is the correct answer to the question.