[Code of Federal Regulations]
[Title 26, Volume 2]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.73-1]

[Page 304-305]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.73-1  Services of child.

    (a) Compensation for personal services of a child shall, regardless 
of the provisions of State law relating to who is entitled to the 
earnings of the child, and regardless of whether the income is in fact 
received by the child, be deemed to be the gross income of the child and 
not the gross income of the parent of the child. Such compensation, 
therefore, shall be included in the gross income of the child and shall 
be reflected in the return rendered by or for such child. The income of 
a minor child is not required to be included in the gross income of the 
parent for income tax purposes. For requirements for making the return 
by such child, or for such child by his guardian, or other person 
charged with the care of his person or property, see section 6012.
    (b) In the determination of taxable income or adjusted gross income, 
as the case may be, all expenditures made by the parent or the child 
attributable to amounts which are includible in the gross income of the 
child and not of the parent solely by reason of section 73 are deemed to 
have been paid or incurred by the child. In such determination, the 
child is entitled to take deductions not only for expenditures made on 
his behalf by his parent which would be commonly considered as business 
expenses, but also for other expenditures such as charitable 
contributions made by the parent in the name

[[Page 305]]

of the child and out of the child's earnings.
    (c) For purposes of section 73, the term ``parent'' includes any 
individual who is entitled to the services of the child by reason of 
having parental rights and duties in respect of the child. See section 
6201(c) and the regulations in Part 301 of this chapter (Procedure and 
Administration) for assessment of tax against the parent in certain 
cases.