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provided to the parties to the Holiday Isle transaction. We are
not convinced because petitioner does not allege nor is there any
evidence that Dogwood Acres provided any services or that
petitioner provided any services as an agent of Dogwood Acres.
3. Conclusion
Gross income includes all income from whatever source
derived unless excluded by law. Sec. 61. Income is taxed to the
individual who earns it; the incidence of taxation cannot be
shifted by an anticipatory arrangement. Lucas v. Earl, 281 U.S.
111, 114-115 (1930). We do not recognize petitioner's transfer
to Dogwood Acres for Federal income tax purposes. Moline
Properties, Inc. v. Commissioner, 319 U.S. 436, 439 (1943);
Kimbrell v. Commissioner, 371 F.2d 897, 901-902 (5th Cir. 1967),
affg. T.C. Memo. 1965-115. We conclude that the $250,000
commission that petitioner received for his services in the
Holiday Isle transaction was taxable to him. Helvering v. Horst,
311 U.S. 112, 119-120 (1940); Lucas v. Earl, supra at 115. We
sustain respondent's determination that the unreported commission
income is attributable to petitioner.
To reflect concessions (e.g., relating to Mrs. Barrow's tax
liability, see supra note 1) and the foregoing,
Decision will be entered
under Rule 155.
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