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Winners of 'Dinner With Barack' Will Face a $560 Tax Bill

keymanjim 2012/06/25 15:22:05

http://taxprof.typepad.com/taxprof_blog/2012/06/dinner-with-....

William Jacobson (Cornell) blogs the tax consequences of the Obama campaign's Dinner With Barackfundraising raffle. Three winners and their guests will receive:

  • Roundtrip airfare (valued at $1,200)
  • One night in a hotel ($200)
  • Dinner with President Obama ($200)

The rules state that "all federal, state and local taxes associated with the receipt or use of any prize are the sole responsibility of the winner." The $1,600 is includible in each winner's income under § 74 -- at the 35% rate, that results in $560 of federal income tax. (Hat Tip: Greg McNeal.)

I think this blogger may have undervalued the dinner with obama. Recently, a group of the "correct 1%" paid $40,000 a piece to dine with barry-boy. So, this tax bill may be considerably higher.

Man, the obama campaign keeps getting funnier with each passing day.

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  • Beccy 2012/07/14 20:59:14
    Beccy
    Why would anyone want to have dinner with this man in the first place
  • kiwimac 2012/06/27 03:19:29
    kiwimac
    How is the requirement to pay federal taxes the fault of the Obamas?
  • keymanjim kiwimac 2012/06/27 03:26:05
    keymanjim
    They could possibly offer to pay the tax for them.

    You know? Spread the wealth around.
  • kiwimac keymanjim 2012/06/27 09:13:26
    kiwimac
    Answer the question: How are the Obamas responsible for a tax that was put in place before their time?
  • keymanjim kiwimac 2012/06/27 14:23:25
    keymanjim
    I did.
    This how it's going to play out.:
    By and large, the type of people that would enter this contest are those that didn't read beyond the word "free meal". So, they went ahead and entered the contest without bothering to read the rules.
    Then when they win, they will be presented with a contract for them to sign. Of which they will spend as much time reading as they did with the rules to the game.
    Come around the time for them to file their taxes, if they even have a job, they will not mention this prize because they had no knowledge that it was taxable.
    Many years, and an obscene interest rate later, the IRS will come after them for non-payment and take everything they have.

    Don't be a victim of the obama dinner scam.
  • kiwimac keymanjim 2012/06/27 21:05:00
    kiwimac
    How are the Obamas responsible for a tax which predates them?
  • keymanjim kiwimac 2012/06/28 04:20:41
  • kiwimac keymanjim 2012/06/28 11:27:34
    kiwimac
    Nope, explain how anyone can be responsible for events which preceded them!
  • Murph 65 2012/06/26 12:56:49
    Murph 65
    +1
    I can't think of a single soul right now that I would pay $560 to dine with. What a joke. Oh, well, I suppose if you entered the raffle in the first place, paying the 560 for trip, hotel and dinner with the big O isn't such a big deal.
  • DarkStorm1976 2012/06/26 10:28:38
    DarkStorm1976
    +1
    Not much of a winning prize is it? It's more a booby prize
  • Aqua Surf BTO-t-BCRA-F 2012/06/26 07:20:51 (edited)
    Aqua Surf BTO-t-BCRA-F
    +1
    Anyone who would enter a lottery to win dinner with a lunatic gets what they deserve. Haha, too funny!
  • DavidK 2012/06/26 05:45:21
    DavidK
    +2
    First he wanted married couples, anniversaries and birthday gifts sacrificed and turned into contributions for his campaign and now this!!!!!! How much lower will he go?!?!?!?
  • Murph 65 DavidK 2012/06/26 12:58:48
    Murph 65
    +1
    The "registry" for Obama completely gets me. Can't you just hear some poor newly-weds arriving at their reception and there are no gifts on the table just a big sign - "We gave to Obama in your name." This is beyond gauche.
  • DavidK Murph 65 2012/06/26 15:13:46 (edited)
    DavidK
    +2
    ROTFL!!! Its sad, but I'll bet it happens to a few. At least it will tell you who your crazy liberal friends and relatives are!
  • Murph 65 DavidK 2012/06/26 16:50:16
    Murph 65
    +1
    My entire family are liberals save husband, kids and one nephew. Life is sometimes tough around here :):)
  • DavidK Murph 65 2012/06/27 04:32:24
    DavidK
    +1
    I'll bet it makes for some great debates!
  • Murph 65 DavidK 2012/06/30 21:21:22
    Murph 65
    Been Vegas, sorry it took so long to get back to you. Yes, it does make for some good debates. It also makes us be careful how we phrase the debates because there isn't much family left and we don't want to completely offend anyone, unlike most other places I get into tussles about politics.
  • DavidK Murph 65 2012/07/01 05:05:38
    DavidK
    +1
    Yea, same here. I'm mild compared to some of my relatives! Gotta be careful even with some on the same side!
  • Murph 65 DavidK 2012/07/01 21:16:13
    Murph 65
    I hear ya talking!
  • texasred 2012/06/26 01:49:23
    texasred
    +2
    LOLOLOLOLOL..... Sorry, but this is too funny. They're getting exactly what they deserve! What a kick!!
  • Prairie Wind 2012/06/25 19:46:24
    Prairie Wind
    +2
    Why would anyone want to eat with them?
  • MisterD 2012/06/25 19:31:03
    MisterD
    +2
    Very true about funnier daily. I wouldn't allow him in my house, so why would I dine with him???
  • Stacie 2012/06/25 18:29:28
    Stacie
    +3
    Once again, Obama's hypocrisy and arrogance know no bounds.
  • BigFig#9 2012/06/25 17:26:41
    BigFig#9
    What's the point? Prize/Contest winnings in the United States have always been taxable...(???) This is no different and consistent with tax law. The 'scandal' would be if they didn't follow tax law.
  • keymanjim 2012/06/25 17:10:51
    keymanjim
    +3
    If we add the already established value of dinner with barry you'll have a tax burden of $14,490.

    WHAT A DEAL!!!!
  • Diane Spraggs Yates 2012/06/25 17:07:22
    Diane Spraggs Yates
    +4
    I would not eat a meal if it was free I would gag and Obama makes me sick because what damage he has done to our COUNTRY !!!!
  • Kane Fernau 2012/06/25 16:51:32
    Kane Fernau
    +4
    You couldn't pay me.
  • ScottyG - Faqueue 2012/06/25 16:45:51
    ScottyG - Faqueue
    +6
    Proves the old adage. There is no such thing as a free lunch or dinner in this case.

    And proof that even when you think you won with the DNC, in the end you lose.
  • No nonsense NanC...don't BS... 2012/06/25 16:31:10
    No nonsense NanC...don't BS me!
    +5
    D*mn that is funny. Do you think that is 0bama's secret plan to increase
    federal revenues? As P.T. Barnum said, "there is a sucker born every minute".

    http://kevin.lexblog.com/file...

    I think he can take a deduction for his donation to a political campaign...... didn't
    they request a $5 plus or minus contribution?.........LOL
  • JT For Political Reform 2012/06/25 16:11:01
  • Magnus ☮ RP ☮ 2012 ☮ 2012/06/25 16:10:00
    Magnus ☮ RP ☮ 2012 ☮
    +7
    Who could possibly hold down lunch long enough to eat dinner with the tyrant?
  • Stacie Magnus ... 2012/06/25 18:27:56
  • Birthpangs 2012/06/25 16:05:45
  • PoliticallyIncorrect 2012/06/25 15:51:37
    PoliticallyIncorrect
    +4
    All the more reason not to have dinner with Obama, huh? As long as it's part of the tax code, I don't see any problem. The tax man is at all the game shows ready to collect the taxes on what's won on the show. Stands to reason all winnings should be taxed. When Oprah gave that dud Pontiac to her audience a number of years ago, if you took the car, you had to pay the taxes right then. I remember reading that many didn't accept the vehicle because they didn't have the money to pay the taxes.
  • sglmom 2012/06/25 15:42:35
    sglmom
    +7
    Now THAT will be priceless indeed ..

    Kind of makes you wonder ..
    will old Turbo Tax Timmy Geithner
    (who seems to not be able to account for his income properly NOR is able to get the Administration/those in "Body Politic" and politically appointed positions to pay their taxes either)
    will that one personally approve of the tax evasion in this case?
    or will there be a last second tax evasion charges swept under the rug as this corruption leaves office?
    hmm ..

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