Guest Blogger: Madeline M. Martin
While perusing one of my favorite serious legal periodicals, “In Touch” magazine, I noticed a short article regarding the taxes associated with the “gift bags” given to celebrities at the various awards ceremonies. As they accurately reported, the bags, and everything in them are not mere gifts (just ask Oprah) and count as income to the recipient.
The magazine estimated the value of the gift bags given to presenters at this year’s Academy Awards at $100,000 – resulting in a $35,000 tax bill for the stars in the top tax bracket and the relative “bargain” of the gift bags from the MTV music awards.
Perhaps the best things in life are not free.
