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enot [183]
3 years ago
15

Ophra is a cash-basis taxpayer who is employed in the publishing industry. This year her employer informed her that because of h

er outstanding performance she is entitled to a free world cruise. Ophra asked her employer to issue the cruise tickets to her parents, and he complied with this request. Identify the principle that will determine whether Ophra or her parents are taxed on the value of the cruise tickets:
Social Studies
1 answer:
S_A_V [24]3 years ago
7 0

Answer:

Assignment of income

Explanation:

An assignment of income is a term that refers to an attempt to limit tax evasion. This concept is often used by taxpayers, like Ophra, when they feel it is necessary to transfer a trivial burden to someone else, as Ophra wants to do, by passing the cruise tickets she has earned to her parents.

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