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Originally Posted by Kevin
If anyone caught the op-ed piece in the NY Post penned by Dick Morris (I know, I know) and Eileen McGann, it raises some issues about Emanuel which on their face appear a lot more troubling than the sorts of things which have already caused other Obama cabinet potentials to withdraw their names from consideration.
The issues raised are these:
1) Emanuel lived rent-free in the home of Rep. Rosa De Lauro for several years and didn't report the fact that he received that home rent-free to the IRS as income (anyone who has had tax law knows the Duberstein case which basically says this is income, and it would appear that the gift wasn't completely gratuitous because Emanuel had used his influence with Freddie Mac to send some money the De Lauros' way). Accoridng to the op-ed, 'experts' think the rent could add up to $100K of taxable income.
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You've misled us, friend.
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Berman was president of Mohawk Metal Corporation. Duberstein was president of the Duberstein Iron & Metal Company. They would often talk on the phone and give each other names of potential customers. After receiving some particularly helpful information, Berman decided to give Duberstein a gift of a Cadillac. Although Duberstein said he did not need the car as he already had a Cadillac and an Oldsmobile he eventually accepted it. Mohawk Metal Corporation later deducted the value of the car as a business expense, but Duberstein did not include the value of the Cadillac in his gross income when he filed his tax return, deeming it a gift. The Commissioner asserted a deficiency for the car’s value against Duberstein. The Tax court affirmed.
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(Ok, granted Wikipedia is not a professional reporting agency...)
So, the issue was NOT THE GIFT. It was the fact that the gifting company reported the gift as a business expense while the recipient did not. If the gifting company hadn't reported it, it would be considered a gift and would, therefore, not be taxable income.
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