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[Music] when one person transfers money to another person the transfer can represent many different types of things the transfer could be a gift a loan an investment wages rent royalties interest dividends a purchase of an asset etc most of the time its easy to determine the character of the transactions but other times it is difficult the type of income being earned is especially important for purposes of sourcing income under sections 861 through 865 but its also important for many other purposes i created a chart that includes yellow boxes showing different types of income or transactions you can see at the top are yellow boxes for rent royalties and sales in the center is a yellow box for services at the bottom are yellow boxes for interest dividends loans and gifts between the yellow boxes are lists of cases or rulings that have analyzed which category the income or transaction should fall into for example to determine if a transaction is a gift or a payment for services the du
