Question

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.

Answer 1

(i) and (ii). Income from property is taxed to the person who owns the property. This means that you cannot assign the income to avoid paying the tax (the "fruit of the tree" tax doctrine). Also, income from services is taxed to the person who earns the income. This also follows the "fruit of the tree" tax doctrine. You must pay the tax whether or not you receive the benefit of the income, but instead whether you had the right to receive the benefit of the income.