- 12 -
Cir. 1981); see also Commissioner v. Indianapolis Power & Light
Co., 493 U.S. 203, 207 & n.3 (1990).
In contrast, amounts properly characterized as loans,
deposits, or trust funds are not includable upon receipt.
Commissioner v. Indianapolis Power & Light Co., supra at 207-208;
Johnson v. Commissioner, supra at 467-475; Oak Indus., Inc. v.
Commissioner, 96 T.C. 559, 563-564 (1991); Angelus Funeral Home
v. Commissioner, 47 T.C. 391, 397 (1967), affd. 407 F.2d 210 (9th
Cir. 1969). The rationale underlying this distinction is that
money received in the capacity solely of a borrower, depository,
agent, or fiduciary, because it is accompanied by an obligation
to repay or restriction as to disposition, is not income at all.
See Commissioner v. Indianapolis Power & Light Co., supra at 208
n.3; Johnson v. Commissioner, supra at 474-475. Hence, no
question of the timing of income accrual is presented. See
Commissioner v. Indianapolis Power & Light Co., supra at 208 n.3;
Johnson v. Commissioner, supra at 474-475.
B. State Funeral Services Regulation
Preneed contracts and arrangements in the Commonwealth of
Massachusetts are governed by the regulations of the Board of
Registration in Embalming and Funeral Directing. Mass. Regs.
Code tit. 239, secs. 4.01-4.10 (2003); see also Mass. Gen. Laws
Ann. ch. 112, sec. 85 (West 2003) (authorizing the board to
adopt, promulgate, and enforce regulations). For purposes of
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