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Daschle did his own taxes.
He, upon his name being mentioned, had a CPA scrutinize his taxes.
When the irregularities were found he reported it, himself, and paid the back taxes and associated fines.
Honestly, if someone sent a limo to pick me up I would not think that I would have to assess the value of the ride and report taxes on it because it was a gift.
Then again, it's been a very long time that someone has even mentioned my name associated wit a limo.
Does that mean, technically, that any time I ride in a friend's car I should be paying tax on it? Ok. a limo and private jet are another thing, but technically is this true?
That is not how I heard the story. Here is an article from Slate Magazine. I find it hard to believe that Daschle did his own taxes, considering how complicated they must be. I have never heard that. As far as the limo, it was provided to him not as a friend giving him a ride, but as a business deal. No, if a friend gives you a ride, you don't have to pay tax. This was provided to Daschle as part of his compensation from this company.
That is not how I heard the story. Here is an article from Slate Magazine. I find it hard to believe that Daschle did his own taxes, considering how complicated they must be. I have never heard that. As far as the limo, it was provided to him not as a friend giving him a ride, but as a business deal. No, if a friend gives you a ride, you don't have to pay tax. This was provided to Daschle as part of his compensation from this company.
Per your article: the value of transportation services provided for personal use must be included in income
so it was not a 'gift tax' matter.But, again, if the car was a ride given him for personal use, my analogy of my friend giving me a lift seems to fit. Say my car is being fixed and my neighbor asks his child to run me over to doctors appointments and the supermarket. Technically, I should be paying taxes on that.
Friend and Employer...to the tune of $128,000 in Car and driver. Thats quite a friend, but since the company also "Compensated" him for his advice for about $500,000 a year for 4 years (thats gooood advice) thats more than just a "friend".
I can see why it might be a little different than someone driving you to a doctors appointment...btw, if the child made a business out of it, there is a 7K + deduction he/she can take this year.
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