Non-attribution rule

The non-attribution rule is a tax principle that prevents income or deductions from being attributed to someone other than the actual taxpayer. In other words, it ensures that when calculating taxable income, the IRS only considers income earned or expenses incurred directly by the person or entity, not by related parties or affiliates. This prevents individuals from shifting income or deductions to others to reduce tax liabilities. The rule maintains fairness by keeping the tax responsibility with the genuine earner or spender, rather than allowing strategies that obscure true ownership or control.