- 19 - 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) (applicationPage: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Next
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