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Based on the circumstances surrounding the gifts to the
Charities, we believe that Brett Floyd acted as petitioners'
agent in the transfer of the AHC stock and that petitioners
relinquished control of the stock on September 9, 1988, when the
letters of authorization were executed, and we so find. The
gifts to the Charities, therefore, were complete on September 9,
1988.
B. Anticipatory Assignment of Income
1. Case Law
It is a well-established principle of the tax law that the
person who earns or otherwise creates the right to receive income
is taxed. E.g., Lucas v. Earl, 281 U.S. 111, 114-115 (1930).
When the right to income has matured at the time of a transfer of
property, the transferor will be taxed despite the technical
transfer of that property. E.g., Estate of Applestein v.
Commissioner, 80 T.C. at 345. The mere anticipation or
expectation of income at the time of transfer, however, is
insufficient to create a fixed right to earned income. Id. The
reality and substance of a transfer of property govern the proper
incidence of taxation and not formalities and remote hypothetical
possibilities. E.g., Hudspeth v. United States, 471 F.2d at 277.
It is the province of the trial court to determine the proper
characterization of a particular transaction upon consideration
of all the facts and circumstances. See United States v.
Cumberland Pub. Serv. Co., 338 U.S. 451, 456 (1950) (application
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