Do you ever wonder
how much those goodie bags are worth as Oscar hopefuls strut down the red
carpet to claim their “gifts” (and hopefully that prestigious statuette!).
Well, the IRS doesn’t believe most of those goodie bags are really gifts at
all, but rather taxable compensation. Why? Because those bags often include items
worth hundreds, thousands and even tens of thousands of dollars and often come
with strings attached.
The businesses that “donate” these items to celebrities at
major, highly publicized events get a business deduction. The recipients are
usually expected to carry, use or otherwise promote the items in public. They may
be talking about them or simply (and conveniently) showing up in photo ops
wearing one of the “gifts.”
Recipients are deemed
to be earning the items so they are not considered true gifts under IRS rules –
it’s taxable income equal to the fair market value of the goodie bag. Of
course, many celebrities chose not to keep the luxury items and instead choose
to donate their goodie bags to charitable organizations. And don’t think just
because you don’t happen to be a celebrity that the rules don’t apply to
you…anyone receiving (or helping themselves to) a goodie bag will be subject to
income tax on those expensive “gifts.” This includes anyone from award show
non-celeb guests to personal assistants to event volunteers.
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