Posted on 02/11/2015 3:15:51 AM PST by SoFloFreeper
Tom Brady just deflated his tax bill, handing off the winning Super Bowl MVP truck worth $35,000 to Malcolm Butler who will pay taxes on the prize. Butler is the rookie cornerback who intercepted Russell Wilson‘s pass on the goal line to seal the Patriots’ Super Bowl win.....
But aren’t gifts tax-free? Not always, and distinguishing between income and gifts can be tough. If gifts are made out of “detached and disinterested” generosity, they aren’t taxable. These gifts are more in the nature of marketing, made in a business context not a family one. Any individual can give gifts to another and avoid gift tax as long as the gifts are no more than $14,000 a year....
If you win a Nobel and are handed $1.4 million, you can turn around and give it to charity. Unfortunately, though, the tax consequences of regifting can be problematic. You get stuck with all the income and have limited deductions. That’s why President Obama arranged to have his $1.4 million Nobel money go direct to charity. If he had collected his prize money and then donated it to a qualified charity, he wouldn’t necessarily be able to write off the entire $1.4 million.
(Excerpt) Read more at forbes.com ...
Just like those eeeevil companies that hold their profits offshore?
Seriously, though, the article is interesting.
Yep. They get ya coming and going.
I think it was a fine gesture for Brady to give Butler the truck, as a form of recognition for his contribution to the win. Tom Brady uses $14,000 dollars for a weekend vacation, it’s literally chump change to him. h8rs gotta h8, I suppose.
Were the tires deflated?
Maybe. But at least it runs (unlike the Seahawks on the goal line...).
The early TV game shows had a GREAT SCHEME. Back in the pre-Reagan days, and especially the pre-Kennedy days, marginal tax rates were through the roof, up to 90%. So you win a car with a retail value of about $10,000, and would actually sell for about $8,000 and have a next-day trade-in value of maybe $6,000 (back then), and you find out that you’ll be hit with a $6,500 tax bill (for the car) that is all due that year.
Most people didn’t have the cash, so they’d give back the car (and get nothing...no requirement for other forms of compensation). Then the game show would hand out the car, yet again, as a BIG PRIZE, to the next sucker...and again...and again.
I believe that got outlawed in some way.
I’ve got to admit that was a VERY FUNNY exchange.
And Butler gets that truck for the cost of the taxes on it. It does seem like doing the right thing worked out well for both.
Considering the actual salary and bonuses Tom Brady earns, I doubt he is worried about the taxes on a $35k vehicle.
I’m still trying understand “detached and disinterested generosity”
Why would they give the Super Bowl MVP such a low end vehicle? A Corvette Z06 would have been more appropriate.
.
Time to dump this stupid canard!
Lynch’s percentage on goal line stands is about 18%.
The Seahawks couldn’t afford to lose the time off the clock to take that slim chance, so they passed.
It was their receiver’s fault that the ball wasn’t deflected to the ground.
.
.
Brady isn’t worried about the money at all.
His family makes enough money in a month to buy the whole team.
He was just uncomfortable with the whole trophy thing due to the circumstances of the end of the game.
.
I don’t know.
Maybe Oscar Taveras?
At any rate, I don’t think a $35,000 truck is low end. I would be very happy to have one.
Of course, these guys have a lot more money than that...
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