Following up on that Politico story about the RNC apparently spending more than $150,000 on clothes for Alaska Gov. Sarah Palin…
I wonder if the governor knows that she’s going to have to pay taxes on those clothes, even if she ultimately gives them away?
Tax experts say that even if she only wears them for professional reasons — locked away in a special "candidate" cabinet, say — Palin will be on the hook for those fancy new duds just as if someone had written her a check for $150,000.
Wonder if she knows that.
UPDATE: Someone familiar with this situation writes that, "Because these accessories belong to the RNC and they will be returned to the national committee, it does not trigger any gift tax liability." So these clothes were purchased for Palin but she will return them to the RNC and they won’t count as gifts? Perhaps some tax lawyers/accountants out there can shed some light on this.