Rather than accept Eagles tickets given to her at work, A asks the firm to transfer the tickets to her father. Does A have income? Does the father? Explain.
A, yes.
Father, no. A gift.
Income must be taxed to he or she who earns it (anti-assignment of income rule)
A is entitled to ten yearly payments in exchange for a covenant not to compete. He asks that next year’s payment be made to his landlord in payment for rent. What tax consequences to A?
Must pay taxes on the income.
Income must be taxed to he or she who earns it (anti-assignment of income rule)
A rents an apt to B. A asks be to send the rent checks to his daughter, A2. Does A have income from the rental payments? Explain
Yes.
Income from property (investment income) is taxed to he or she who owns it.