Tax Agreement Puts End to Oscar Swag (1 Viewer)

[Henry Gale]

Movie stars appearing at the Academy Awards will no longer receive the lavish goodie bags they have come to expect -- worth as much as $100,000 each and including freebies such as iPods, resort vacations, coupons for laser eye surgery, jewelry and high-priced lingerie -- because of a crackdown by federal tax collectors.

http://www.washingtonpost.com/wp-dyn...081700844.html

 

[Holadem]

This is terrible news. Poor things.

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H

 

[MatthewLouwrens]

Although the article starts out saying they won't be getting the bags any more, that doesn't seem to be true, based on the rest of the article. The recipients simply have to pay taxes on the items as non-cash income.

 

[Adam_S]

I've never thought it was fair that the government is supposed to get a share of your gifts as well, that's why I don't report bday or grad money (not like I'm getting a lot, more or less pocket money. On the other hand I can understand with the high value of the gifts why there's a limit, otherwise what's to prevent each person from gifting their year's salary to their spouse (and vice versa) and neither having to pay any taxes?

The sad part is that while the presenters don't necessarily need the swag it literally has made the careers of many of the people lucky enough to get included (it's sort of like getting a product into wal-mart in terms of the success the various individuals and boutiques garner from it for the rest of the year).

 

[Chad R]

What about George Clooney who sold his bag off at auction for charity? Would he have to pay taxes and then turn around and write it off as a charitable donation?

 

[mattCR]

I do agree, though, they are basically not "gifts" but they are used as a means to promote and advertise product. Every person who stuffs something in that bag does so hoping that Reese Witherspoon will be seen going to their store with a gift certificate. Or Jim Carrey will try out a new iPod. Or whatever. They are being paid for promoting it by receiving an item free.

 

[seanOhara]

It's my understanding that all nominees get these bags, not just the rich stars. This will really suck for writers and editors and anyone involved with an indie film that gets nominated.

 

[ToddP]

You don't have to report birthday or grad money (maybe I misinterpreted and this was a joke/sarcasm). Gifts up to $11k in value are exempt from taxation.

 

[Adam_S]

sarcasm todd.

I believe the presenters are given the giantly huge valuable baskets as their only thank you/compensation for presenting. Since presenters are usually the top of A list actors, that makes sense. I can't remember about the nominees, they may not get a gift basket, if they do it is much smaller. On the other hand, most will get gift baskets from their studios, production companies, colleagues, friends and family. they just aren't likely to include plastic surgery and 30k vacations

 

[Lew Crippen]

Presenters are ‘working’ and the packages they receive are now (and should always have been) considered ‘pay’ or ‘compensation’. As such, it should be taxed.

 

[MatthewLouwrens]

 

[Paul McElligott]

 

[Chris Lockwood]

I don't see why they'd have to stop giving the bags- the recipients just need to pay the taxes on them. They could give back anything they don't think is worth the taxes.

This is really nothing new- stuff like that has always been considered taxable income. It's much like prizes on a game show. You'd think most of the recipients would have accountants doing their taxes who would know that. (I knew it, & I'm no accountant.)