Atrributing Gross Income To Someone

Question 1

Personal Services

Answer 1

Income must be taxed to service provider

Question 2

Income From One’s Property

Answer 2

Can be taxed to someone else but only in narrow circumstances:

Outright gift of entire property, gift of present income interest are ineffective to shift the income from the property to the donee’s return if the donor retains future interest.

Question 3

Kiddie Tax

Answer 3

All unearned income of children under 18 or 24(if full time student) Is taxed to teh children at the parent’s highest tax rate.