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View Full Version : Winners of 'Dinner With Barack' Will Face a $560 Tax Bill



bijou
06-25-2012, 12:05 PM
William Jacobson (Cornell) blogs (http://legalinsurrection.com/2012/06/that-3-dinner-with-obama-may-cost-you-hundreds-in-taxes/) the tax consequences of the Obama campaign's Dinner With Barack (http://www.barackobama.com/om-dinner-with-barack-june-signon?source=dinner-with-barack_URL) fundraising 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 (http://www.barackobama.com/dinner-with-barack-june/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 (http://www.law.cornell.edu/uscode/text/26/74) -- at the 35% rate, that results in $560 of federal income tax. (Hat Tip: Greg McNeal.)http://taxprof.typepad.com/taxprof_blog/2012/06/dinner-with-.html

Janice
06-25-2012, 02:33 PM
The "free" dinner was the joke.

The taxes are the "punchline".

Hubie
06-25-2012, 05:26 PM
I wouldn't pay a single dime to have dinner with that arrogant, incompetent jerk.

Retread
06-25-2012, 07:25 PM
Accept the invitation - then don't show. When the news guys ask you about it say "what dinner?"

Elspeth
06-25-2012, 07:27 PM
The "free" dinner was the joke.

The taxes are the "punchline".

Doesn't that describe the entire administration?

Retread
06-25-2012, 07:38 PM
Doesn't that describe the entire administration?

^^^ that!