MEDIA ALERT: How Much Will Oscar “Freebies” Cost Celebrities in Taxes?

Wolters Kluwer Tax & Accounting Expert Provides Insights on the Tax Implications of Accepting “Free” Gifts

--()--Wolters Kluwer Tax & Accounting:

What: This year’s 90th Academy Awards are just around the corner, and so are the luxurious “swag bags” given to major award nominees. While these famous, and sometimes notorious, giveaways attract the attention of lifestyle consumers and pop-culture enthusiasts, the excitement to be a recipient should be tempered by the requirement to pay taxes on these “freebies”.

Why: In 2006, after the IRS and the Academy reached an agreement on taxing gift bags given to attendees, the Academy ended the practice. However the practice of giving away gift bags has continued by outside vendors who directly supply Oscar nominees with decadent goodies. While celebrities may be tempted to accept the bags which are known for providing a range of jewelry, spa packages, cosmetic procedures and extravagant trips, they must remember that these gifts come with tax obligations.

Who: Tax expert and movie buff Mark Luscombe, JD, LLM, CPA and Principal Federal Tax Analyst for Wolters Kluwer Tax & Accounting, is available for interviews and in-depth information about the tax implications of swag bags and other gifting that may be considered taxable income. Among the topics Mark can discuss:

  • At what point a “free” gift is considered taxable
  • The expected taxes celebrities will pay on a goodie bag valued over $100,000
  • Tax implications for celebrities who refuse to accept, donate or sell all or part of their swag bags
  • Tips for advance tax planning before accepting a swag bag or similar gifts
  • Tax implications for similar arrangements, such as lottery wins, endorsement deals and Olympic medals

When: Mr. Luscombe is available for phone interviews to provide in-depth background and analysis on the taxes associated with celebrity swag bags and other gifts.

To arrange interviews with Mark Luscombe or other federal and state tax experts from Wolters Kluwer Tax & Accounting on this or any other tax-related topics, please contact:

NICOLE YOUNG     BRENDA AU
347-931-1055 847-267-2046

N.Young@wolterskluwer.com

Brenda.Au@wolterskluwer.com

Contacts

Wolters Kluwer Tax & Accounting
NICOLE YOUNG
347-931-1055
N.Young@wolterskluwer.com
or
BRENDA AU
847-267-2046
Brenda.Au@wolterskluwer.com

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Release Summary

This year’s 90th Academy Awards are just around the corner, and so are the luxurious “swag bags” given to major award nominees.

Wolters Kluwer Tax & Accounting