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Tax Expert: Palin Has to Declare Clothes

October 22, 2008 3:38 PM

I just got off the phone with a well-respected and well-known tax attorney who doesn't want to be identified.

I asked him earlier in the day whether Alaska Gov. Sarah Palin can avoid paying taxes on the $150,000 worth of clothes the RNC bought her, as she and the RNC maintain. (They said the RNC now owns the clothes; she's just borrowing them.)

He said that, after consulting with a number of experts at his prominent firm, he thinks the RNC and Gov. Palin are wrong.

"It's probably not a 'gift,'" he said. "The issue is whether it counts as 'income.'"

Palin's claim that the pricey duds belong to the RNC and she's just "borrowing" them and will return them later, reminds him, he says, of some of the issues going on in the prosecution of Sen. Ted Stevens, R-Alaska. (Some of the issues, he specified, not the allegations of criminality.)

"This is exactly the issue with the Stevens case," he said. "When you loan something to someone can you call it a 'loan' if, upon its return, it has no practical value?

"The consensus view is she would have to count the wardrobe as income at least in the amount of the fair value of the rental of the wardrobe," he said.

He added that the law is clear that uniforms -- "big brown suits with your name on them" -- don't qualify as income, but it would be hard to make the argument that fancy dress suits from Saks Fifth Avenue and Nieman Marcus are a uniform.

"Especially since Palin is employed by the state of Alaska and not the RNC," he said.

- jpt

October 22, 2008 | Permalink | Share | User Comments (380)

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New motto:

SHOP, BABY, SHOP!

Posted by: TexGal51 | Oct 23, 2008 10:48:55 AM

It's not longer, drill baby drill.

It's


SHOP! BABY, SHOP!

Posted by: TexGal51 | Oct 23, 2008 10:46:27 AM

I'd drop dead from shock if Palin told the taxman thanks but no thanks in declaring $150K value of her clothes.

Posted by: buzziea | Oct 23, 2008 10:40:27 AM

Whether you're a Manchurian Candidate, or a Stepford Wife, you gotta dress the part.

She's as phony as a three dollar bill, and no amount of lies, mirrors, or smoke the RNC throw around can cover that hard, cold fact.

Posted by: Martin | Oct 23, 2008 10:20:16 AM

Barack wears resoled shoes, and Michelle sports a $34.95 dress. But let's not go there, they are elitists who are not proud of America!

This Caribou Barbie is an A-grade phoney. She was for the birdge before she was against it, before she decided to take the money anyway. She put the Alaska biz jet - mostly used to ferry prisoners out of state - on eBay but didn't sell it, and finally sold it at a loss! She fired the gubernatorial mansion chef, and then charged per diems for working out of home. She pledged to cut waste and inefficiency and then decided to parade her children on the national stage at state expense. She decided to be an efficient budget manager but left the city of Wassilla a humongous deficit. She is supposed to be an experienced executive but was mayor of a ciy that has no responsibility for services, schools, safety etc. She is supposed to be foreign affairs expert whom McSame has consulted many times (forget he didn't know till about three months back) and can't find even Texas on a map!

Compared to all that this $150k splurge is small change. Of course let's forget that a certain Sen.McCain in 1993 - on the floor of the Senate - railed against using campaign money on personal expenses and wanted candidates to be penalised for that!

Posted by: goodandtrue | Oct 23, 2008 9:53:02 AM

Vera Wang has a new line out for Kohl's department stores. How much more affective would the "real American" story have been if the campaign had gotten in touch with Kohl's and chosen clothes from the Wang line and others that really did keep her on par with American values? Instead, she allows someone to choose her clothes, dress her and style her much like a movie set or a play session with Barbie. Think about how appealing it was to women who watched "The View" when Michelle Obama was wearing a $125.00 dress from White House/Black Market. While still over the top for some shoppers, a lot more in line with most.

Posted by: donna | Oct 23, 2008 9:52:45 AM

PALIN IS GOVERNOR OF ALASKA....ARE WE SUPPOSED TO BELIEVE SHE DOES NOT HAVE A'WORKING' WARDROBE FOR THE OFFICE?DOSE SHE GO TO THE GOV. OFFICE IN HUNTING GEAR? SHE TOUTS HERSELF AS 'ONE OF US'..WHAT 'US' IS SHE REFERRING TO?HOW MANY OF 'US' SHOP AT NM OR SAKS?

Posted by: J SOLOMON | Oct 23, 2008 9:47:42 AM

With imagination and resourcefulness, two qualities which should be mandatory for the position she seeks,one could dress elegantly on very little. With one navy blue, one grey, one neutral, one brightly colored suit, mixing things up could provide anyone with a month of outfits. And these suits can be found at outlet and thrift stores.
If she truly was like the rest of us, she would "make do".

Posted by: realvirginiantoo | Oct 23, 2008 9:37:34 AM

A woman who looks as nice as Palin could buy a suit at Sears and still look great. This Nieman Marcus wearin'hockey mom story isn't selling.

Posted by: Shades | Oct 23, 2008 9:26:35 AM

The main story here is that Mz Palin came out of Alaska touting herself as a reformer and got rid of the good ole boys. Well, she is worse than the good ole boys she claimed to have ousted--which she didn't actually oust the feds were already investigating them. Now that the story has come to light the cloths are 'loaned' and will be 'donated'. Please, if this story had not come to light her and her children would be headed back to Alaske with designer dudes.

Posted by: lt | Oct 23, 2008 9:22:40 AM

Coming to the defense of the modus operandi of hypocrisy and GOP elitism, Joe Scarborough stated yesterday on Morning Joe: "We can't have a candidate dressed from Wal-Mart"

Seems those small town REAL America values can't be seen out in public, especially representing the GOP.

Posted by: Begonia Buzzkill | Oct 23, 2008 9:17:39 AM

An unnamed source? Come on, give us a name! How do we know that this joker of "a well-respected and well-known tax attorney" hasn't donated the maximum amount to the Obama campaign, or the DNC, or doesn't work for Miner, Barnhill & Galland, who used to employ Obama?

Posted by: Tom | Oct 23, 2008 9:14:44 AM

Can the GOP have anything else go wrong for them. This is crazy, trooper-gate, tax-gate, smear-gate and now fashion-gate, will their base ever wonder just what is wrong? You would think that they would think about these things just a little before thinking the liberal media (who gives McCain a pass on almost everything) just has it in for them. I can hear them now!

Posted by: Kathy | Oct 23, 2008 9:12:10 AM

Palin needed clothes... I've seen how she dressed before the campaign and it was not to win.

What should have happened is the McCains should have purchased the clothes from their abundant personal fund for her. And then *after* the election they could have given them all to the RNC to auction off as a fundraiser. Win or lose, it would make money, and this would have been a win-win for everyone. Palin gets to dress up for a while, and McCain gets a tax writeoff for a contribution to the political party he has all but destroyed, and the RNC gets some much needed cash.

The lack of insight into how to do this correctly is exactly why McCain/Palin should lose the election. Executives who make really bad decisions.

Posted by: Alan | Oct 23, 2008 8:42:20 AM

She's got the zap on her head, the delusions of grandeur. It'll be bad if they lose (which is seeming likely). Note to her friends: Keep her away from sharp objects when the election results start coming in.

Posted by: Mage | Oct 23, 2008 8:28:16 AM

Her salary in ALASKA is $125,000 a year. But she spent $150,000 on clothes.
Talking about living beyond your means. She's a real fiscal conservative role-model!!
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
We need to be fair in these matters. It's common knowledge among job applicants when interviewing for a job you need to dress for that job.

You don't dress for the job you have. You dress for the job you aspire to.

It's called dressing for success. You update your resume, buy some new threads, put a shine on those shoes, get your hair done and then go for it.

You look sharp, you feel sharp, sister, YOU ARE SHARP!!

Posted by: Bob123 | Oct 23, 2008 8:15:49 AM

{[[Jake, get out of Sarah's closet.]] says Joe the Plumber.}

Hey Joe,

Pay your back taxes, pay that fine you owe to the Arizona License Bureau, and get a plumbing license and register yourself!!

Posted by: goodandtrue | Oct 23, 2008 8:13:22 AM

Jim,

The difference is that Palosi and Clinton buy their own clothes and don't accept them from the Democratic National Committee nor donors to the campaign.

Posted by: RichardinDlemar | Oct 23, 2008 8:11:36 AM

Has anyone in the media asked Nancy Pelosi or Hillary about the cost of their wardrobe? The hypocrisy makes me ill...


Try to peddle faster and keep up with the rest of us.

Nancy and and Hillary ARE NOT campaigning on the platform that they are just ordinary hockey moms driving around town in a 3 year old dented maroon Dodge Caravan full of kids and the family dog.

Can you hear me know??

Posted by: Bob | Oct 23, 2008 8:09:44 AM

TROOPERGATE, NOW FASHIONGATE!!
Her salary in ALASKA is $125,000 a year. But she spent $150,000 on clothes.
Talking about living beyond your means. She's a real fiscal conservative role-model!!

Posted by: PB | Oct 23, 2008 8:05:24 AM

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