Why would it not be taxable income? Everything is income unless specifically
exempt. I don't recall signing bonuses as being exempt. It is compensation
for services - either an outrageous amount for the autograph or the
expectation of services in the future. It is not a gift because something
was expected of the person receiving the bonus. The fact that there were no
strings attached does not really mean anything - unless your client is
stupid - in that case I will be very happy to sign my name for $25,000 if
the other guy runs out. Oh wait, I know, this is a "de minimus fringe
benefit". $25,000 is next to nothing to the heavy hitters -whoops wait a
minute - cash is by definition not eligible for de minimus fringe treatment.
So, it looks taxable to me - even if it is a gift, a gift tax return will
have to be filed.
Pat, EA in MI
----- Original Message -----
From: Virginia Linke <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Sent: Tuesday, August 24, 1999 3:47 PM
Subject: Signing Bonus
> Hi,
> I have a client who paid an executive a 25,000.00
> signing bonus for accepting a position. This was a no
> stings attached bonus. They are insisting that this
> should not be included as taxable income.
> Does this sound correct?
> Thanks for any input.
> VMLinke
>
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