According to the assignment of income doctrine, income must be taxed to the person receiving the cash from an income-generating transaction.

Question

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The assignment of income doctrine actually states that income must be taxed to the person who earns it, not necessarily the person who ultimately receives the cash from the transaction. This principle prevents taxpayers from avoiding taxation by assigning their income to others who might be in a lower tax bracket.

According to the Assignment of Income Doctrine, Income Must Be