Question

Is an assignment of income from property taxable to the recipient for income tax purposes?

Answer 1

If it relates to an anticipatory assignment of income, it relates to an assignor's rights to receive an income in future. which consitute income only once it's received or otherwise accrued in the due course of events in future.

In case of assignments for valid consideration, if an income producing property, such as an interst in a claim, is transferred in an arm's length transaction in a valid consideration, the assignment of income doctrine should not apply and the income from the property should be taxed only when ultimately received; income to the transferor is measured by the amount realized in the transfer.