Oscar with tax?
Entertainment industry is one of the major industries today. There are thousands of movie stars, editors all around the world. Every year, they are make a great number of movies. How to define the quality of a movie and how to say if an artist is good or not? Awards maybe is the best way to identify the quality of a movie.
Oscar is one of the most important awards for movie makers. The movie makers who win the Oscar will not only recieve honor, a golden statue and a lot of gifts, but also a income tax bill.
According to CNN news, the star who win the Oscar will recieve a great number of gift bag. It is said that the gift bags have estimated to be worth more than $100,000. Some people says these gifts might be treated as a taxable income. However, the other group of people argued that they are just gifts and might not treated as a taxable income.
Right now, this is a contriversial issue. The IRS spokeman Terry Lemons said, "It really depends on the facts and circumstances of each of these cases."
2 comments:
I think it is important to understand that our Federal Government does have a nice little tax called the "Gift Tax" and that would apply in this situation if the government choose to push the issue, but I think that we may be missing an important part of the equation. I am not a big awards show fan, but from talk shows and such that I have watched I remember hearing that all of those items are given from companies to these celebrities in hopes that they can get their product "on" the celebrity. I am not a tax expert but if the product has been created by a company and given to somebody I don't believe that it should be subject to any kind of tax. If I make a chair and give it to my friend should they have to pay tax on that chair that I made for them? I don't believe so. If you give someone a car, a house, or money then maybe it should be taxed but I don't believe that bags should be in this situation.
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