As a general rule: I.Income from property is taxed to the person who owns the property.II.Income from services is taxed to the person who earns the income.III.The assignee of income from property must pay tax on the income.
IV)The person who receives the benefit of the income must pay the tax on the income.
A)Only I and II are true.
B)Only III and IV are true.
C)I, II, and III are true, but IV is false.
D)I, II, III, and IV are true.
E)None of these is true.

Question

Quizplus · Accepted Answer

Only statement I and II are true. Income from property is taxed to the person who owns the property, and income from services is taxed to the person who earns the income. Statements III and IV are false. The assignee of income from property is not necessarily responsible for paying tax on that income; it depends on the terms of the assignment. Similarly, the person who receives the benefit of the income may not always be the one responsible for paying the tax on that income.

As a General Rule: I