Ouch.

Winners of ‘Dinner With Barack’ Will Face a $560 Tax Bill

William Jacobson Cornell blogs the tax consequences of the Obama campaign’s Dinner With Barack 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 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.)

via TaxProf Blog: Winners of ‘Dinner With Barack’ Will Face a $560 Tax Bill.

Advertisements