I don’t know about you, but I am always a little envious when I hear of all the fabulous goodies inside an award show’s gift bag. Stuff that you and I can often only dream about is given to celebs who present at the shows. The goodie bags for this year’s presenters at the Emmy Awards (held August 27th) contain items that total between $27,000 and $33,000.
But now, the IRS is wanting some of it. Celebrities were reminded by the Academy of Television Arts and Sciences in a letter that the IRS sees the goodies inside the bag as taxable income and they should be reported on their taxes. Celebrities must sign a waiver stating they received this letter, thus removing any responsibility from the Academy for those that don’t pay.
What prompted this? Last year’s Academy Award ceremony offered bags in which no item was worth less than $500, with the total bag worth being more than $100,000. When bags start containing that much loot, you can bet the IRS is going to take notice! The IRS believes they may collect as much as $1.2 million on last year’s Oscar bags. The only way for celebrities to legally get out of paying taxes on the goodies is if they donate them to a charity, as that is usually tax-deductible.
What is in the bags? This year’s Emmy bag includes among other things:
Memberships
Such as one-year memberships to The Sports Club/LA and YogaWorks.
Trips
Including a five day golf or ski getaway to the Adara Hotel, a two day wine appreciation camp at the Napa Valley Hotel, a five day stay on Grand Bahama Island, two nights at the US Grant in San Diego, six days at The Lodge in Molokai, Hawaii, six days at the Wharekauhau Country Estate in New Zealand, and four days at Dolphin Bay Hotel in Pismo Beach, California.
Gift Certificates
For places such as Morton’s Steakhouse, the Fresh Spa, Babystyle, DreamSleep Studio, and Prive and Ona Spa.
Accessories
Such as Gingi skincare product, an Ike Behar silk tie, button-down shirt, and cufflinks, a string of pearls from Pearl Paradise, and Dooney and Bourke leather roller luggage.