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IRS reached an agreement with the AMPAS with respect to Awards gift baskets, often gossipped to contains 100K+ worth of items. Also, IRS decided to launch an outreach campaign to whole entertainment industry regarding the taxability of gift bags and promotional items.

If they donate the gifts, then they can deduct the FMV of the gift. So in the future it will be interesting to watch the celebs giving away these gifts charities for profit ( publicity + escape for taxes )

I don't think they would be able to fdonate these items for financial gain! They would still have to claim the income and then take the charitable deduction. That is unless the IRS is looking at giving the rich more benefits!

Doug

IRS or the Academy of Motion Picture Arts and Sciences does not talk about the settlement for the back taxes and penalties for the unreported gifts in the previous years. The value of these gifts ran into millions and the taxes also in that range. Since both parties are keeping silence, it could easily guessed that there were something going on behind the scene.