Skip to main content

Taxability of Gift Bags


COLLAPSE
Excellent article about taxability on expensive gifts. First thought comes in mind is that gifts are not income so why tax. Well the IRS is looking for way to collect tax revenues with the least amount of fuss. So what is the taxable value of these gifts? According to IRS Gift Bag Questions and Answers: “In general, the person has received taxable income equal to the fair market value of the bag and its contents and must report that amount on his or her federal income tax return.”
The IRS is now notifying entertainment and charitable organizations that they must issue appropriate 1099-MISC forms at the end of each year to each celebrity or recipient of these expensive sets of gifts.
Reference: https://www.irs.gov/uac/gift-bag-questions-and-answers
2)Taxability of Gift Bags
COLLAPSE
I do not have any objections to gifts being taxable that are worth more than 600 dollars. In this case, celebrities are gifted for their nominations in categories. As stated in the article if they do not want to be taxed on these items the smart thing to do would be to not accept it or make arrangements to have this gift donated to a charity. In my honest opinion, celebrities getting these gifts are not necessarily concerned with this extra taxation as they are already making millions anyway.
For example in a article Anne Hathaway was taxed on goods given to her at the Oscars totaling up to $47,000. The gifts included a certificate for a face lift (worth 5,000) and an all expenses paid trip to Australia. These gifts are subject to taxes in the state that they were given and the federal rate of the taxpayer. When these are re-gifted to others they are in theory supposed to issue a 1099 so that the IRS can track it. As stated above though, it is my belief that this is the least of celebrities worries as they can afford the things in the gift bag on their own without it being gifted. In my honest opinion, I would not accept this gift if given the option or I would make prior arrangement to have this gift donated to charity upon receipt.



Comments

Post a Comment

Popular posts from this blog

Identify and discuss a key milestone in the history of computers that interests you and why.

  Part 1Title: Lab ResponseDiscuss one feature of MS Word and one feature of MS Excel that you found challenging within the lab and why. Examples are WordArt, inserting shapes, adding borders, cell styles, etc. This response should be at least one paragraph in length. Part 2Title: History of Computers Identify and discuss a key milestone in the history of computers that interests you and why. This section should be at least one paragraph. Part 3Title: System Software vs. Application Software In your words, explain the difference between application software and system software as if to another coworker who has limited technical knowledge. Use examples to support your rationalization. This section should be at least two paragraphs. Part 4Title: Blockchain and Cryptocurrency In a minimum of one paragraph each: 1. Conduct some research on the internet and discuss one underlying technology of cryptocurrencies like blockchain, cryptography, distributed ledger technol...
Post a Comment
Read more

Cybersecurity and Infrastructure Security (CISA)

 Develop a research paper that identifies a specific Department of Homeland Security (DHS) operating agency. Fully describe 1 DHS operating agency from the following list: Cybersecurity and Infrastructure Security (CISA) U.S. Customs and Border Protection (CBP) U.S. Citizenship and Immigration Services (USCIS) Federal Emergency Management Agency (FEMA) U.S. Coast Guard (USCG) U.S. Immigration and Customs Enforcement (ICE) U.S. Secret Service (USSS) Transportation Security Administration (TSA) The information must include a discussion of the selected DHS agency. Identify the agency’s mission, goals, objectives, and metrics. Conduct an analysis of how these mission areas address the threats or challenges. Recommend agency program priorities among the current set of goals, objectives, metrics, or budget items. Justification of all choices is an essential element of this assignment. Reference all source material and citations using APA format. WE OFF...
Post a Comment
Read more

Discuss how the project

ord count : no idea 1. You are required to write a report on all project activities involved in all the 10 knowledge areas of project management for the entire project life cycle. You should also include a list of the respective PM documents, for example PM Plan, PM Quality Management Plan, Risk management, Procurement, etc. The report must include the activities that are considered before the project is closed out. 2. Discuss how the project quality management plan can provide adequate standards and controls in managing global teams in projects. Your discussion must provide adequate arguments for the need of cultural awareness and legal issues. Regards, The post Discuss how the project appeared first on My Assignment Tutor . Assignment status :  Resolved by our Writing Team Source@ PrimeWritersBay.com GET THIS PAPER COMPLETED FOR YOU FROM THE WRITING EXPERTS   CLICK HERE TO ORDER 100% ORIGINAL PAPERS AT PrimeWritersBay.com NO PLAGIARISM
Post a Comment
Read more