Giving Huge Gifts To Friends

[Judge]

Ever wonder what the financial/tax details involve when people like Elvis would give away Cadillac cars to his friends? Here's an interesting story of how actor George Clooney gave away 14 million dollars to his friends and associates who helped him early in this career.

Here's What George Clooney Owed in Taxes After He Gave His Friends $14 Million in Cash

So if you ever win the lottery and want to reward your friends and relatives, here's what it may entail.

 

[Katleya]

Wasn't there some kind of controversy about the taxes when Oprah Winfrey went on a car-gifting spree with members in the audience?

 

[Judge]

Wasn't there some kind of controversy about the taxes when Oprah Winfrey went on a car-gifting spree with members in the audience?

Not familiar with that story. Though I know what happens when a celebrity doesn't pay the taxes they are owed. But then so does Wesley Snipes.

Let's hope recipients of such things have the taxes paid for them. I had a cousin who once won a chair on "The Price Is Right" in 1977. Unfortunately the IRS were waiting for her to "COME ON DOWN!" too.

I once talked to a reality tv personality years ago who told me she paid around 48% for her second place winnings ($50K) on a tv show. Ouch.

 

[Butterfly88]

I find it funny they call $1 million a token of thanks. That's more then a token if you ask me.

 

[Judge]

I find it funny they call $1 million a token of thanks. That's more then a token if you ask me.

Perhaps in the future states like Colorado, Washington and Nevada can give away a million in tokes.

But the tax man will still want his share of those winnings....even when they go up in smoke.

 

[the_tortoise]

I am astonished that there is such a thing as a "gift tax" in the US.....no such thing exists in Canada.

 

[Katleya]

Not familiar with that story. Though I know what happens when a celebrity doesn't pay the taxes they are owed. But then so does Wesley Snipes.

Probably Wesley Snipes and many, many more who managed to keep the publicity down.

So, I found a Forbes articles; turns out the cars were considered a prize, hence the taxes like they would have had to pay on lottery: A Look Back At Oprah's Ultimate Car Giveaway

I once talked to a reality tv personality years ago who told me she paid around 48% for her second place winnings ($50K) on a tv show

I guess winning is different than keeping...
Now, your cousin's chair, the IRS were really waiting? How expensive could that chair have been?

 

[Judge]

Now, your cousin's chair, the IRS were really waiting? How expensive could that chair have been?

Oh..lol I was just being facetious about the IRS. But yes, she did have to declare and pay taxes on her "winnings". Enough for me to never want to win much of anything but ca$h itself.

I've always though that was nasty....cash I can understand. But merchandise...and stuff you may not even have a use for. Makes me wonder how many contestants on "Let's Make A Deal" were prepared for such an outcome?

I'd rather win on George Clooney's "show". Where HE pays the taxes.

 

[Katleya]

Oh..lol I was just being facetious about the IRS. But yes, she did have to declare and pay taxes on her "winnings".

Well, I guess this week you were the winner of "That one joke Katleya didn't get right away". Sorry about that, I usually get it when you're being facetious, so I'm not sure how I missed it. The good news, however, is that there are no taxes on this winning!

 

[Judge]

Well, I guess this week you were the winner of "That one joke Katleya didn't get right away". Sorry about that, I usually get it when you're being facetious, so I'm not sure how I missed it. The good news, however, is that there are no taxes on this winning!

I know here locally there's a threshold of where if you win a certain amount in the casinos, it is automatically reported to the IRS. How convenient.

In that respect I suppose the subject isn't that humorous. In once worked with someone who had an IRS lien against him with his wages being garnished. He was one unhappy dude. But unlike Wesley Snipes he wasn't behind bars, either.

 

[Butterfly88]

Perhaps in the future states like Colorado, Washington and Nevada can give away a million in tokes.

But the tax man will still want his share of those winnings....even when they go up in smoke.

Lol, thanks for the laugh Judge.

 

[Butterfly88]

I am astonished that there is such a thing as a "gift tax" in the US.....no such thing exists in Canada.

Lucky, it would be nice if the USA would do away with the gift tax.

 

[Fridgemagnetman]

In the uk winnings are usually tax free.

In your face america.

 

[Fridgemagnetman]

Well, I guess this week you were the winner of "That one joke Katleya didn't get right away". Sorry about that, I usually get it when you're being facetious, so I'm not sure how I missed it. The good news, however, is that there are no taxes on this winning!

Unnoticeably

 

[Judge]

Lucky, it would be nice if the USA would do away with the gift tax.

Yes indeed! However it wasn't in the original tax reform proposal so I'm guessing the Senate proposal doesn't have it either. Oh well, I wasn't on George Clooney's guest list anyways.

 

[xudo]

In the uk winnings are usually tax free.

In your face america.

Also, if you win the lottery, the tax has already been deducted from it. So they will say the jackpot is £1m, but the actual amount would be higher because of the amount of tax to be paid.

 

[Butterfly88]

Yes indeed! However it wasn't in the original tax reform proposal so I'm guessing the Senate proposal doesn't have it either. Oh well, I wasn't on George Clooney's guest list anyways.

Well I certainly wasn't on George Clooney's guest list either. We shall make our own list of George Clooney rejects.

 

[OkRad]

dang. Also in the US, if you live in Canada, you have to pay US taxes if you are an American citizen. Even if you NEVER LIVED THERE. The revserse is not true.

 

[tachyon]

Ever wonder what the financial/tax details involve when people like Elvis would give away Cadillac cars to his friends? Here's an interesting story of how actor George Clooney gave away 14 million dollars to his friends and associates who helped him early in this career.

Here's What George Clooney Owed in Taxes After He Gave His Friends $14 Million in Cash

So if you ever win the lottery and want to reward your friends and relatives, here's what it may entail.

Gift tax seems like double-taxation to me. Presumably the 'gifter' already paid the tax on the money earned as income

I find it funny they call $1 million a token of thanks. That's more then a token if you ask me.

Pocket change compared to the U.S. national debt at (approx) 20 trillion

 

[Judge]

Gift tax seems like double-taxation to me. Presumably the 'gifter' already paid the tax on the money earned as income

That it is- for George Clooney.

However to the IRS it's earned income with one party and unearned income for the other party receiving a cash gift. The only consolation being George's generosity and ability to afford getting taxed twice over the same money.