Posted on 03/07/2006 1:05:38 AM PST by paudio
Guests who took home gift-packed bags from Sunday's 78th Annual Academy Awards ceremony may have to pay $30,000 in taxes on their new acquisitions. The bags, which included a $7,000 Victoria's Secret underwear set and a coupon for Lasik surgery, are worth approximately $100,000 each. And unfortunately for the celebrities present, the Unites States Inland Revenue Service has declared that the bags given to Oscar attendees count as taxable income. IRS commissioner Mark Everson quips, "We want to make sure the stars 'walk the line' when it comes to these goody bags."
I seem to recall that one of the items included is an all expenses paid trip to a spa or hotel in Hawaii that runs more than $25,000, and a diamond necklass.
Mark
You make a good point... It IS a gift, and the gift tax is the responsibility of the gift giver. I believe that the first $11,000 is non-taxable, but everything else is, at a pretty damned high rate: I seem to recall that it's in the same neighborhood as the death tax. And CA will hit them hard too, up to 9%.
Mark
To quote Piers Anthony, "The Infernal Revenue Service."
Mark
To quote Piers Anthony, "The Infernal Revenue Service." "Just because you're dead doesn't mean you can stop paying taxes!"
Mark
Damn straight they are. They always have been. If the IRS has not enforced this before, they have been falling down on the job (not unusual, of course). If I hand the keys to a $100,000 car to my neighbor, we're both gonna have to pay tax.
Perhaps if picking up that bag is going to cost the "stars" 30 grand, they'll think twice about the "freebies" next time. Especially since most of the items are promotional in nature, and they probably don't even want them.
Seems like I recall studying a little about this in law school. I believe the phrase that describes a gift under income tax law is something given "with a detached and disinterested generosity." If the "gift" was given to induce attendance or create attention to one's product, or to reward good performance, or anything other than "just because we love you" then it is not a gift. I think this is a closer call than some are making it appear. I don't like taxes either, so I am torn between my disregard of taxes and my enjoyment at watching liberal stars get nailed.
I think the rub is that the bags are tied to the "stars" doing the red carpet thing. Therefore, the bags are for services rendered.
a $7,000 Victoria's Secret underwear set
So they can wear new undies every day?
gifts are taxed as income. Actually, I am for surtax on liberals.
Take out the part between the apostrophes ... the bag is worth $100,000. VS is worth $7,000.
Beat me to it. I have never heard of the Inland Revenue Service.
Did the male guests get the underwear, too?
The IRS limit on gifts is $12K/year (I think). Don't forget to file your Forms 709, guys!
At $7,000, I bet nobody wears them on Mexican night.
http://www.swagtime.com/swagable/?id=263
78TH ANNUAL ACADEMY AWARDS® - OFFICIAL OSCAR® PRESENTERS GIFT BAG
This is a growing list. As we confirm items in the official presenters basket, we will have them here for you to see!
Who Got the Swag: Jon Stewart, Tom Hanks, Sandra Bullock, Morgan Freeman, Meryl Streep, Jennifer Aniston, Nicole Kidman, Keanu Reeves, George Clooney, Reese Witherspoon, Jamie Foxx, Hilary Swank, Clint Eastwood, Charlize Theron, Queen Latifah, Will Ferrell, Owen Wilson, Uma Thurman, Jessica Alba, Terrence Howard, Naomi Watts, Steve Carell, Ludacris, Luke Wilson
IIRC, Victoria's Secret featured a $30,000,000 bra (platinum, ruby, and diamond) in their last Christmas catalog.
Anyone ever heard of the "Inland Revenue Service"???
UK term for their IRS. Which of course brings up the old Benny hill Joke:
Q: Why didn't she pay her taxes to the Inland Revenue?
A: Because she lived on the coast.
Old (and extremely tired) publicity stunt. They get a jeweler to make the thing, parade it around for the press, then break it down. Basically the only cost is labor, insurance etc.
Companies have done it for shoes, bras, bikinis, etc.
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