Winners of 'Dinner With Barack' Will Face a $560 Tax Bill
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.
Top Opinion
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Magnus ☮ RP ☮ 2012 ☮ 2012/06/25 16:10:00
You know? Spread the wealth around.
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.
WHAT A DEAL!!!!
And proof that even when you think you won with the DNC, in the end you lose.
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
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 ..