Posted on 04/01/2010 6:14:55 AM PDT by SmokingJoe
Tiger Woods has got a million problems, and one of them is that he's out $10 million.
That's reportedly the amount he paid mistress No. 1, Rachel Uchitel, to keep quiet right as the scandal broke.
Uchitel was outed by the National Enquirer as having an affair with Woods in November. A week later, Woods crashed his car into a fire hydrant in his neighborhood, allegedly after his wife, Elin, confronted him about the story and the affair after finding text messages from Uchitel on his phone.
In the day after the stories of Tiger's cheating came out, Uchitel hired power attorney Gloria Allred and threatened to hold a press conference, which was cancelled at the last minute. Reports came out that Tiger had paid her off -- anywhere from $2 million to $5 million, to keep quiet. Now, TMZ.com reports that figure was much higher -- $10 million.
(Excerpt) Read more at nypost.com ...
If so Gloria Allred got 60% of it or more.
Now who’s the pimp!
Tell me this doesn’t encourage women to do the sexual lottery with successful men? Really sick.
10 mil, huh? I’m in the wrong business. /sarc
So does he now sue the little wench for his $10M since she blabbed? ....breach of contract, etc....?
CC
Hey love your pic with President Bush.
When did you meet him?
And now the Enquirer is saying Elin is pregnant. *SIGH*.
Immediately afterward Allred went on to represent the porn actress who claimed to have had an affair with Tiger, again trying to pimp him for millions. At least Tiger was smart enough not to fall for the same con twice.
What a lousy investment, considering 10 other girls spilled the beans.
This story is going to make the rest of his floozys even that much more angry :o)>
Janine Pirro shredded Allred to pieces about that porn actress on Hannity the other night. Loved it. Watch it:
http://www.youtube.com/watch?v=Dto4KWdvei8
Can Tiger deduct the payment off his taxes? I think a case can be made for it, as it was designed to protect his name, and his future earnings...thus in a way it was a business expense? And then does she have to claim it as income, and report it as such...? It wasn't a settlement from a lawsuit..whcih normally is tax-free?
Talk about a high maintenance chick!
To be deductible as a business expense, the payment must be ordnary, necessary, and reasonable (Section 162(a)). The ordinary criterion basically means that the expense must not be capital in nature. Because the expense relates to the future, it might not be an ordinary expense. Some capital expenditures are subject to depreciation or amortization. Other capital expenditures are not deductible until the owner sells the business. There may be some case law about whether such an expense meets these criteria.
Even if it is not a deductible expense, it is likely taxable to her. Gross income includes all income unless the nature of the income is specifically excluded from gross income (Section 61(a)). As to lawsuit settlements, only payments for physical injuries or sicknesses are excluded from gross income (Section 104).
Possibly, the payment is a gift. In that case, Tiger would have to file a gift tax return and pay gift tax. A gift is a transfer without adequate consideration in money or money’s worth. I do not think it is a gift because he is paying her for her silence, which is something he perceived to have monetary value.
Again, thanks..
:) I wish.
Expenses of a for-profit corporation are considered to be business expenses. However, that does not mean that all business expenses are deductible.
That all expenses of a corporation are considered business expenses is why Section 212 does not apply to corporations. Section 212 allows individuals (and also estates and trusts because they are taxed like individuals with certain exceptions) to deduct expenses for the production of income for activities that do not rise to the level of a trade or business.
Corporations may make gifts to charity for which they may claim a deduction up to about 10 percent of their income (Section 170). However, you are correct—corporations are not subject to gift tax.
Whether a business receives a deduction for an expense does not determine whether the income is taxed to the individual. Gross income includes all income unless it is specifically excluded (Section 61(a)).
Yes, in some cases, there is a matching of deductibility and taxability such as alimony is taxable to the recipient and deductible by the payor and child support is excluded from gross income and not deductible by the payor.
However, that is not always the case. Assume a business paid someone to kill a rival. The payment for the killing would not be deductible because murder is against public policy. However, the payment would be included in the hitman’s gross income.
The income tax return of a not-for-profit organization is Form 990. I am not sure if there is a special version of it for a foundation. I am not sure about the public availability of such forms, but I think they are supposed to be available to the public.
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