Breaking NewsBreaking News

DNA TEST DETERMINES LARRY BIRKHEAD IS THE BIOLOGICAL FATHER OF ANNA NICOLE SMITH'S DAUGHTER, DANNIELYNN HOPE MARSHALL

Advertisement

column_buckwolfcolumn_buckwolf

Celeb Tax Perks: Can Nelly Deduct His Grillz?

(Page 4 of 4)

Q: Are Celebrity Gift Bags Taxable Income?

The best part about being rich and famous might be all the freebees. This year's Oscar gift bag — including a Blackberry 8700c, a Kay Unger Kimono, 13 vouchers for free trips, a cultured Tahitian-pearl necklace — was valued at $110,000, and even the IRS was licking its chops.

"As the world watches the glamour and glitz of the Academy Awards, it's important to keep in mind that movie stars face the same tax obligations as ordinary Americans," said IRS Commissioner Mark W. Everson in a press release just before this year's ceremony. "We want to make sure the stars 'walk the line' when it comes to these goodie bags."

Let's just hope best actress Reese Witherspoon remains legally blonde.

Buck Wolf is entertainment producer at ABCNEWS.com. "The Wolf Files" is published Tuesdays.

Marketplace