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A Big Wrinkle in Palin's $150,000 Clothing Allowance

October 22, 2008 9:24 AM

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.

- jpt

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.

October 22, 2008 | Permalink | Share | User Comments (243)

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Sarah Palin recently told Brian Williams should would release her medical records. What is the hold up? Voters want to know about your health before they vote - not after.

Posted by: hottopics | Oct 23, 2008 7:34:38 PM

to susan from the beginning of this thread:
Obama has a birth Certificate.. he was born in an area that would consider him a "natural citizen"

McCain, on the other hand, was born in an area in the world of which the law specifically, at the time of birth, was stated to NOT BE AN EXCEPTION.... Panama Canal Zone was the Only area listen to be out of the exception for military births and such. Even though there was a law later that would make anyone born after 1937 to be considered "natural" The LAW CAN'T be Grandfathered!!! Natural means at time of birth.. at McCain's time of birth he was considered NOT a Natural citizen. He might be a citizen of the United States, but he is not a "Natural Citizen".

Before you start to slander people make sure you have done your own research.

I will not be voting for either of these candidates.. The Political System is STALE and it's time for a Third Party to make for real "Change". Most of the third parties agree with each other on most key issues. this obviously means something.

Posted by: Greatzky | Oct 23, 2008 7:07:18 PM

Once Sarah Palin wears the clothes that she accepted from the RNC (gifts), they are "used."

What do you get when you donate your clothes to charity? Do you get to write off the full price?? No, they no longer have the same value (maybe $30/bag full).

If the Republicans were honest about it Sarah Palin would pay the tax for the $150,000 in gifts and then write off the depreciated value.

If these elitest Republicans paid their fair share of taxes and didn't use all their loopholes to avoid paying them, we & the country would be better off.

Posted by: Christine | Oct 23, 2008 8:07:34 AM

What issues would that be Margi? That Obama speaks of the economy while McCain and pretty girl speak about Obama? That Obama talks about the pain the middle class is going through while McSame and his side kick talk about finding a terrorist to string up? Or is the issue Obama talks about in worn out shoes with holes in the soles from walking while your precious Palin is breaking in a new pair or more of stylish pumps each day? No mam, you stop. It is about claiming to be 'one of us' and trying to out dress the rest of us. If you do not see the ignorance, you need therapy.

Posted by: Larry W | Oct 22, 2008 11:57:29 PM

This does bear an uncanny resemblance to the situation with Ted Steven's fancy massage chair. It must be nice living in a fantasy world where you can make up your own tax and ethics rules.

The other candidates are wearing their own clothes on the trail. McCain has a fondness for fancy shoes, but there is no indication that he has had the campaign buy any for him. Michelle Obama has stated a fondness for The Gap and H&M. She can afford her own clothes since she shops like a normal person, not like a millionaire on holiday.

Posted by: fletc3her | Oct 22, 2008 11:53:03 PM

Come On,

Can we please focus on the issues? I can't believe the ongoing pettiness on the part of the media. All 4 candidates have substanial positions to explore. I don't care about their clothing budgets, if they wear flag pins, etc.

And ABC, you really are the worst. Get out of entertainment and sensational mode when reporting on politics. Just the issues, please.

What happened to your journalistic ethics?

Margi
San Diego, CA

Posted by: Margi | Oct 22, 2008 11:42:41 PM

You betcha! They said about $5,000.00 worth. But his sled dogs got nothing.

Posted by: Larry W | Oct 22, 2008 10:46:20 PM

Did the first dude also get clothes?

Posted by: morrigan | Oct 22, 2008 10:30:51 PM

Palin, as a running mate, absolutely needed a new wardrobe, no one is disputing that. What's the fuss all about? She claims to be a hockey mom from Main Street, and (like all hard working Americans, yes you Joe The P) sits at the kitchen table with Todd wondering how they're going to pay the bills. The fuss is about the $150k!! No big deal if she didn't repeat over and over how she's just like struggling, small town Americans! Only in the GOP: Having 7 houses = you're a hard working American. Having intellect and education = elitist.

Posted by: Shaz | Oct 22, 2008 9:36:52 PM

Who cares!? Come, one, people. Even Oprah does this type of "wardrobe" dressing. She has a resale shop in Chicago where the clothes (costumes) that she's worn on the show or elsewhere are sold and the proceeds benefit her charities. Her company owns the clothes, and so even Oprah is not hit with tax on them. No big deal.

Please find something more substantial in which to find fault. Really, our country is going to hell in a hand basket and we are bickering over minutia?!

It's no wonder other countries are laughing at us.

Posted by: Rosemary Kinman | Oct 22, 2008 9:26:22 PM

Well, if the plane trip to Hawaii costs around 150,000 bucks, WE all would care. Obviously you have nobody you love enough to buy a plane ticket to go see when they are sick. Take a look at the photo of Obama sitting at his desk with his feet up. Yea, those are holes in the bottom of his shoe soles. And they are NOT 500.00 dollar shoes either. Wake up folks...

Posted by: Larry W | Oct 22, 2008 9:21:53 PM

This is the woman who feels our pain? Is just like us? I mean, just how stupid can get this campaign get?


You take a girl from the boondocks who is supposed to be little Miss Main Street, and you make her up to look like Jackie O?


If I were a donor, I'd want a refund! They should have spent the money on a tutor instead of a new wardrobe! She may look pretty, but she's a moron!

Posted by: Mia | Oct 22, 2008 6:28:25 PM

Opps. That should have been 'wears' not 'weats.' My error, I apologize. I think the point still stands.

You also asked why the news media cares anyway. Cause it 'aint her dough. And she is attempting to play herself off as 'one of us.' And there 'aint a whole lot of us can spend 150,000 clams in a two month period without breaking a sweat. In fact, that 150,000 buckoroos would have kept quite a few people in their homes for awhile, instead of living in the street or in a shelter or with relatives. And lastly, I seriously doubt that if the McCain/Palin (or is that the Palin/McCain campaign?) had of openly said, 'Hey, we want to do a special fund raiser so we can dress Sarah up real nice for you photo bugs, and so she doesn't have to look like you regular folks, a huge line would have formed with their checkbooks out.

:)

Posted by: Larry W | Oct 22, 2008 6:26:27 PM

To Stephen Gianelli,

...'Unless she weats them for social occasions apart from the campaign.'

Gee, like Saturday Night Live?

Posted by: Larry W | Oct 22, 2008 6:08:23 PM

All I can say is this is the gal who is telling other women she is the 'Wal-Mart' mom, and the hockey mom, and the 'just like them' mom. Funny, I was at the local Wal-Mart a few days ago and the women in the check out line in front of me were not talking about going over to Sacks afterwards and picking up a couple hundred bucks worth of new clothes. Although they all looked like they had done a nice job of brushing or combing their own hair and putting on their own make up. I suppose it shouldn't be so much of a surprise that they just wanted to dress Sarah up for the part she is 'playing.' I would imagine that eventually the State Of Alaska will receive an expence report requesting reimbursment for at least some of this silliness anyway. Why not, one reporter already said that the same guys who built the 15 million dollar hockey center for her, also helped her hubby put up the new house. Gee, there sure is a lot of free stuff comes with her job huh? My big grumble is real regular folks paying to dress up her husband. Come on people, give us a break. (Is he on 'Official secret V.P. business?) Course the instant Republican response is always to point at somebody else when a question is brought up. Mrs. Obama dresses within her means and within their budget. It is not important for her to be 'beautiful' for all the rest of us, only for her husband. As far as Palin paying taxes on the clothes...seriously, don't you think she knows how to get out of that one already? Dah.

Posted by: Larry W | Oct 22, 2008 4:34:22 PM

can't help but thinking of RNC donators being fooled by buying accessories for Palin's wardrobe.. (btw where can i get a lipstick for my pitbull?)

Posted by: Jeremy | Oct 22, 2008 4:21:31 PM

hey joe ur $100 donation to RNC is used for Palin's boot polish expenses..

Posted by: Mark the Middleclass | Oct 22, 2008 4:18:58 PM

Sarah Palin's $150,000 worth of clothing, makeup & hairdos are "loaned" to her.
Wait a minute, Ted Stevens' is on trial right now trying to defend that a massage chair in his house for 7 years wasn't a gift but "loaned" to him??

Is "loaned" the Republican buzz word to evade paying taxes!

Posted by: Christine | Oct 22, 2008 3:54:21 PM

Ooops... it was HIGH than that!

$13,200 - to put lipstick on the pitbull!

....The Sleuth has learned that Palin's high-paid traveling make-up artist is Amy Strozzi, who was nominated for an Emmy Award for her work as head of makeup on "So You Think You Can Dance." Strozzi was paid $13,200 by the McCain-Palin campaign last month alone, according to the campaign's latest financial disclosure report filed this week.

Posted by: Leah | Oct 22, 2008 3:19:20 PM

I am curious -- is it even legal to take political contributions and use for clothing and hairdos and makeup? I would not have had a problem if Mr. or Mrs. McCain had spent some of Mrs. McCain's money to buy her some new outfits but wonder why "Joe the Plumber" and others who donated their money for the compaign should buy clothing for she and her family - especially a baby!! Wonder who paid for the "boyfriend" to fly to Minnesota? Would love to read an answer to that one...
Michelle Obama, on the other hand, was seen at a rally with military wives and families in a simple skirt, white blouse, and sweater. The "first duds" (I mean first dude) must be enjoying his new duds.

Posted by: patti | Oct 22, 2008 3:17:31 PM

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