Uncle Sam Sweeps The Oscars

gift tax

It happens every year.

First come the Oscars, then comes the April tax filing deadline. And, I can just imagine Uncle Sam greedily rubbing his palms together as he watches the show, knowing he’s going to be handsomely rewarded as a result of this night too.

That’s because of the SWAG bags the winners and nominees are given, this year many of which are valued at $250,000 and more! The actors are required to pay taxes on the value of the gifts, which represents a pretty big chunk of change for the IRS.

Gifts Are Income

You see, those gifts in the SWAG bag are not pure gifts. They are considered income for the actors.

For individuals who want to give gifts, they can bestow as many $15,000 gifts on their children and friends without either the giver or the recipient having to pay a gift tax. But the gift cannot exceed $15,000.

What’s In The Bag?

So, what exactly did this year’s Oscar winners get in their SWAG bag? Well, it looks like the biggest, most expensive gift is a cruise for two to Antarctica on the world’s first ultra-luxury expedition yacht, The Scenic Eclipse, valued at $78k. Then there are jewelry and clothing items and lots of very expensive skincare products. It includes a trip to the prestigious Golden Door Spa in San Diego, California, and a getaway for eight guests in an active Spanish lighthouse, as well as a five-night stay at a new lifestyle hotel in Waikiki, Hawaii.

The value of this years’ Oscar swag bag is reportedly valued slightly less than the 2019 gift bag. Certainly not enough to matter to Uncle Sam.

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