Oscar Guests May Be Hit with Taxes

IMDB.com ^ | 3/6/06

[paudio]

I wonder if they'll pay the taxes.

[Sun Descending]

"The bags, which included a $7,000 Victoria's Secret underwear set and a coupon for Lasik surgery, are worth approximately $100,000 each."

It's a 7,000 set, but it's worth approximately $100,000?
Does it's value increase when it's owned? :P

[skr]

The bags are worth $100k each, according to the sentence structure. My, my, they had to pay the guests a lot to make them come.

[Sun Descending]

Oh, the BAGS. Got it. Sorry!

[JoeGar]

It's a 7,000 set, but it's worth approximately $100,000? Does it's value increase when it's owned?

The $7k is just for the Victoria's Secret underwear. There's other stuff in the bag too, such as a $20k cosmetic surgery gift certificate.

[milemark]

The bags are a gift? Isn't the giver responsible for paying the tax on gifts? Or are the bags really a payment for the stars to show up, like an appearance fee in disguise?

[son of caesar]

Yes, the superior among us usually dont show up unless you pay them off the books with such untaxed amenities. I had read a while back that cher would not attend poodle kerrys rally in new york unless she was flown there in a chartered jet. No jet, so she didnt go. babs streisand is also famous for demanding such pay off the books.

[nopardons]

Yes, they DO! :-)

[dbehsman]

From the article:
"IRS commissioner Mark Everson quips, "We want to make sure the stars 'walk the line' when it comes to these goody bags."

Mark, Mark, Mark, (shaking my head) when are you ever going to learn?!? These are liberals! They are above the law. The law only applies to all of us little peons. Sheesh, government officials these days!(sarcasm off)

Also from the article:
"...which included a $7,000 Victoria's Secret underwear set..."

How in the BLUE F*** does a "set" of underwear cost $7000.00!?!?!?!?!??!?!?

What are they made of? Platinum?

[Always Right]

After getting hit with a $30K tax bill, these celeberties will run away as fast as they can from these gift bags. It is kind of odd that they have gotten away with this for this long.

[kingu]

Absolute bunk. That's not income, that's a gift. What's next - I'm going to get taxed for junk mail? They were given stuff as a method of publicity. The bigger the gift, the more times it gets repeated by the trades and traditional news sources.

There's no verification as to the actual 'value' of the gift, no exchange (if each person stopped to be photographed with the company for publicity purposes, sure, that gift is income), and without a verified value and an exchange, it is of no more income value than the Marlboro brass dice I got in the mail.

The IRS is fishing here, and I hope that they get slammed hard for it. I mean, what is the value of a coupon for $20 thousand dollars in cosmetic surgery if it isn't used? A seven thousand dollar set of underwear that someone doesn't want. Sorry; as much as I detest much of the Hollywierd crud that walked down that carpet, they shouldn't pay taxes on this junk.

[paudio]

How in the BLUE F*** does a "set" of underwear cost $7000.00!?!?!?!?!??!?!?

After reading that kerry's haircut cost $700, nothing surprises me any longer...

[paudio]

How in the BLUE F*** does a "set" of underwear cost $7000.00!?!?!?!?!??!?!?

After reading that kerry's haircut cost $700, nothing surprises me any longer...

[milemark]

Sounds like tribute paid to mobsters, only less honorable.

[hocndoc]

Good comments, kingu.

There's no way that this is "income."

It is an advertising gimmick from the seller.

[hocndoc]

"Inland Revenue Service"?

[son of caesar]

You call it right, my friend. Mobsters have some sense of honor. The clowns in hollywood have none at all.

[Always Right]

The bags are a gift? Isn't the giver responsible for paying the tax on gifts? Or are the bags really a payment for the stars to show up, like an appearance fee in disguise?

Since they expect to get publicity from the stars using their products, I suppose they can be viewed as payments for a service. However, someone owes a tax on these items. If they are gifts, I think there is an $11K limit before there is a tax due. But you are correct, in that case the tax is owed by the donor, not the donee.

[maggief]

Reuters - Wed Feb 22, 4:18 PM ET A Victoria's Secret $15,000 bra and panty set embellished with a (removable) Chantal Thomass gold and diamond brooch presented to the five Oscar best actress nominees is shown in this undated publicity photograph. These and other gifts are finding their way into goodie bags being sent to Oscar nominees this year in an explosion of celebrity gifting by companies hoping for publicity -- a star using their product. NO SALES NO ARCHIVES REUTERS/Victoria's Secret/Handout