Oscar Celebs Get Free Gifts Worth $205K, Pay 50% Tax

Oscar Celebs Get Free Gifts Worth $205K, Pay 50% Tax

Share to Linkedin There are plenty of different categories at the Academy Awards, and not all celebs come away with awards or even gifts. Some get swag worth $60, 000, but top nominees get a jam-packed gift bag worth $205, 000. There's a long tradition of gifts at the Oscars and with good reason. Companies pay promoters to place their gear in gift bags so the stars will use it, hopefully somewhere on camera. The companies pay a fee to donate the goodies, and nominees get the pricey stuff for free. Everyone wants celebs to show off their gear, so companies naturally write off the cost on their taxes. That's a legitimate business expense, but it's worth thinking about the recipient's side of the equation too. Some celebs turn down gifts, but why would anyone say no to free stuff? The celebs have to report the value of what they receive as income, and the taxes can be big too. How can gifts be taxed as income? The answer is when they are not really gifts. And the pricey items add up. This year's gifts valued a $205, 000 according to the New York Times NYT include a vacation at