It covers gross income, including recognition of gain in basic property transactions; business deductions and credits; dual purpose expenses; deductions and credits for personal living expenses and issues of tax expenditure analysis; characterization of gains and losses from property; deferred recognition transactions unrelated to accounting method issues; timing and other tax accounting issues; tax-motivated transactions; assignment of income
and the taxable unit issues; and the alternative minimum tax.
Once human capital has been transformed into a taxpayer-created asset alienability is possible, and thus a tax-effective assignment of income
The fact that the taxpayer surrenders the winnings to the state does not give rise to an assignment of income
because the taxpayer is not directing the payment of the winnings to another person.
The conflict between [section] 1041 and the assignment of income
doctrine was addressed in the Ninth Circuit Court of Appeals case of Kochansky v.
Fifty-one chapters are organized into sections covering gross income, items excluded from gross income, personal deductions, businesses, investment activities, timing methodologies, income characterization, non-recognition provisions, assignment of income
, select tax topics, and litigation and research.
This should avoid the DTP's imputation of the trust's gain back to John under the assignment of income
Because the regulation refers to the assignment of income
, instead of relying upon the court order, a custodial parent may prefer to irrevocably assign his or her right to the child support payment stream to a self-settled trust.
If capital is not an income-producing factor, the transfer of a partnership interest to a family member may be disregarded as an ineffective assignment of income
, rather than an assignment of property from which income is derived.
Notwithstanding some doubt, I think Myer must be taken as establishing that, except in the case of the assignment of an annuity where the income arises from the very contract assigned, an assignment of income
from property without an assignment of the underlying property right will, no matter what its form, bring about the result that the consideration for that assignment will be on revenue account, as being merely a substitution for the future income that is to be derived.
Banaitis distorts foundational principles, known as assignment of income
law, which help identify the person who must report income for federal tax purposes.
Thus, the IRS should consider issuing updated guidance along the lines of Notice 2001-69, (12a) which essentially suspended the principles of constructive receipt and assignment of income
following September 11 to permit charitable donations of annual leave.