High-net-worth celebrities who think they can avoid paying the tax man by donating the goody bag’s contents to charity might be sorely disappointed when they realize how little they can actually deduct.
“They can make a charitable contribution, but the problem is charitable contributions are going to be limited to 50 percent of their adjusted gross income, and you have a phase-out for itemized deductions when your adjusted gross income exceeds certain values,” said Narelle MacKenzie, an accounting lecturer at San Diego State University’s Fowler College of Business Administration. Bloomberg – Mar 1, 2017 / by Allyson Versprille
Narelle Mackenzie was a contributor to this recent Investor’s Business Daily article about the the tax pitfalls Hollywood’s A-listers face when receiving Oscar night swag-bags. The February 2017 article explored some of tax questions that might concern recipients of these gifts which could be valued up to $200,000 or more. Narelle provided some insights into how celebrities could manage their tax burden when receiving one of these pricy gifts.
ScottHow Oscar Celebs Can Cope With Taxes On ‘Swag Bags’: Tips For You Too
Connect with Narelle
7676 Hazard Center Drive
San Diego, CA 92108
Tax Savings of $750 Million.
Contract Review resulted in indirect tax savings of $750 million over the life of the contract by utilizing exemptions, certificates, and where that was not possible, changing the Importer of Record to a related party.
Global Tax Savings of $20 Million.
Tax savings accomplished through structured placement of assets that was tax free for US tax purposes but provided a step-up in basis for foreign country purposes.
Reduction of Taxes to $0.
Identified a solution for a US joint venture with a US partner and a foreign partner, operating in a third country, which reduced US taxes for the foreign partner, on the foreign operation, to zero.