Pearl to Auburn

[ziggysfryboy]

Hmmm. OK, so the tax payment is a gift, which has to be combined with other gifts to the mistress, has to be below the annual exclusion to avoid any gift tax issues. Alternatively, it's compensation for services rendered (heh). If so, I presume she's subject to self-employment tax.


Either way, it's a curious case study on the tax consequences of the situation.

Perhaps Bruce was considering half of the gifts as coming from Mrs Pearl on his tax return/annual gift limit???

[MayorBeluga]

Perhaps Bruce was considering half of the gifts as coming from Mrs Pearl on his tax return/annual gift limit???

"Here honey, sign this tax form. Oh, it's nothing. No, I don't know why it says gift tax return. Just sign it."