Explain the significance of Lucas v. Earl and Helvering v. Horst.

A.

Lucas v. Earl, the Supreme Court held that earnings from labor are taxed to the person who performs the services rather than the person who receives the income. In Helvering v. Horst, the Supreme Court held that income from property is taxed to the person who owns the property rather than the person who receives the income. One cannot assign income by arranging to have payment made to another person.

B.

Helvering v. Horst, the Supreme Court held that earnings from labor are taxed to the person who performs the services rather than the person who receives the income. Lucas v. Earl, the Supreme Court held that the assignment of income from property is taxed to the person who receives the income. One can assign income by arranging to have payment made to another person.

C.

Lucas v. Earl, the Supreme Court held that income from property is taxed to the person who owns the property rather than the person who receives the income. Helvering v. Horst, the Supreme Court held that earnings from labor are taxed to the person who performs the services rather than the person who receives the income.

D.

Lucas v. Earl, the Supreme Court held that a business is taxed on the earnings from any services rendered. Helvering v. Horst, the Supreme Court held that the assignment of income from property is taxed to the person who receives the income. One can assign income by arranging to have payment made to another person.

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