# Did Stormy Daniels pay taxes on the $130,000 in hush money? **URL:** \ **Category:** Factual Questions\ **Created:** [August 24, 2018, 11:40pm UTC](https://boards.straightdope.com/t/did-stormy-daniels-pay-taxes-on-the-130-000-in-hush-money/820229 "2018-08-24T23:40:36Z")\ **Posts on this page:** 17\ **Page:** 2
**Author:** ![Chronos](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chronos/32/134_2.png) [@Chronos](https://boards.straightdope.com/u/Chronos)\ **Post date:** [August 25, 2018, 1:00pm UTC](https://boards.straightdope.com/t/did-stormy-daniels-pay-taxes-on-the-130-000-in-hush-money/820229/21 "2018-08-25T13:00:36Z")
Pretty much every transfer of money from one entity to another is taxed. Don’t complain about the same money being “double taxed”: By my estimation, every dollar has been taxed on average about 50 times. ---
**Author:** ![JRDelirious](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jrdelirious/32/9531_2.png) [@JRDelirious](https://boards.straightdope.com/u/JRDelirious)\ **Post date:** [August 25, 2018, 1:53pm UTC](https://boards.straightdope.com/t/did-stormy-daniels-pay-taxes-on-the-130-000-in-hush-money/820229/22 "2018-08-25T13:53:27Z")
> [@Enola\_Gay](#): > > Right but given how public this whole thing has been, I can’t believe no one has asked her. Or maybe they have & I just can’t find it… Or they looked into it and found no hot lead. Or no hot lead _yet_. Parties involved in an exchange for consideration, whether or not they are in the public eye, as a rule each assume their part of whatever tax obligations are incurred thereby and what’s news is if there’s reason to suspect they did not. ---
**Author:** ![ftg](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ftg/32/2801_2.png) [@ftg](https://boards.straightdope.com/u/ftg)\ **Post date:** [August 25, 2018, 7:54pm UTC](https://boards.straightdope.com/t/did-stormy-daniels-pay-taxes-on-the-130-000-in-hush-money/820229/23 "2018-08-25T19:54:13Z")
Note: Checking the article and looking around I see that the payment to Stormy wasn’t a gift. It was a payment for her cooperation. I.e., there was a two-way transfer of “assets”. Like selling your book rights to a publisher. So she has to pay taxes. ---
**Author:** ![friedo](https://avatars.discourse-cdn.com/v4/letter/f/8edcca/32.png) [@friedo](https://boards.straightdope.com/u/friedo)\ **Post date:** [August 25, 2018, 8:04pm UTC](https://boards.straightdope.com/t/did-stormy-daniels-pay-taxes-on-the-130-000-in-hush-money/820229/24 "2018-08-25T20:04:31Z")
> [@ftg](#): > > Note: Checking the article and looking around I see that the payment to Stormy wasn’t a gift. It was a payment for her cooperation. I.e., there was a two-way transfer of “assets”. Like selling your book rights to a publisher. So she has to pay taxes. [Pssst](https://boards.straightdope.com/sdmb/showpost.php?p=21168011&postcount=3). ---
**Author:** ![Colibri](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/colibri/32/1841_2.png) [@Colibri](https://boards.straightdope.com/u/Colibri)\ **Post date:** [August 25, 2018, 8:06pm UTC](https://boards.straightdope.com/t/did-stormy-daniels-pay-taxes-on-the-130-000-in-hush-money/820229/25 "2018-08-25T20:06:03Z")
> [@ZurBob](#): > > If I understand correctly…I give my child 100k (that I’ve already paid tax on) I’ll owe additional taxes on this same money (in excess of the exclusion) simply because I gifted it. What a crock! > [@ZurBob](#): > > Just a fountain of knowledge aren’t ya? Any more pearls of wisdom? **Moderator Note** Here’s one. Political potshots and insulting remarks are not permitted in GQ, especially when your initial comment was ill-informed. Don’t do this again. Colibri General Questions Moderator ---
**Author:** ![ZurBob](https://avatars.discourse-cdn.com/v4/letter/z/71e660/32.png) [@ZurBob](https://boards.straightdope.com/u/ZurBob)\ **Post date:** [August 25, 2018, 9:11pm UTC](https://boards.straightdope.com/t/did-stormy-daniels-pay-taxes-on-the-130-000-in-hush-money/820229/26 "2018-08-25T21:11:38Z")
> [@Colibri](#): > > **Moderator Note** > > Here’s one. Political potshots and insulting remarks are not permitted in GQ, especially when your initial comment was ill-informed. Don’t do this again. > > Colibri > General Questions Moderator I entered the conversation poorly informed. Thanks to knowledgeable contributors, I became informed, and they were courteously thanked. I think this is the normal ebb and flow here.😕 After the fact, someone interjected a snarky comment, to which I replied in kind… **OUR** bad. To be clear: I took no political potshot at any time during this conversation, perhaps you have me confused with someone else. ---
**Author:** ![Colibri](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/colibri/32/1841_2.png) [@Colibri](https://boards.straightdope.com/u/Colibri)\ **Post date:** [August 25, 2018, 11:16pm UTC](https://boards.straightdope.com/t/did-stormy-daniels-pay-taxes-on-the-130-000-in-hush-money/820229/27 "2018-08-25T23:16:35Z")
> [@ZurBob](#): > > After the fact, someone interjected a snarky comment, to which I replied in kind… **OUR** bad. > > To be clear: I took no political potshot at any time during this conversation, perhaps you have me confused with someone else. **Moderator Note** After getting a moderator note for snark, it is really not a good idea to reply snarkily. Your “what a crock” comment appeared to be directed at government tax policy, and hence was a political potshot. (Political is not the same as partisan.) Any further discussion of moderation should be taken to ATMB. Colibri General Questions Moderator ---
**Author:** ![Tim\_T-Bonham.net](https://avatars.discourse-cdn.com/v4/letter/t/46a35a/32.png) [@Tim\_T-Bonham.net](https://boards.straightdope.com/u/Tim_T-Bonham.net)\ **Post date:** [August 26, 2018, 12:27am UTC](https://boards.straightdope.com/t/did-stormy-daniels-pay-taxes-on-the-130-000-in-hush-money/820229/28 "2018-08-26T00:27:28Z")
> [@Enola\_Gay](#): > > Right but given how public this whole thing has been, I can’t believe no one has asked her. Or maybe they have & I just can’t find it… It’s quite likely that the IRS has asked her about it, if it wasn’t on her 2016 tax return. And they may have required her to file an amended return, with this income listed (and probably with interest & penalties added). But you & I will not find out about it, because income tax returns are strictly private. If anyone from the IRS talks about it, they could lose their job, and possible face legal charges. She could choose to make her own tax return public, but why would she want to do that? She’s not running for any office, or likely to gain anything from the publicity. ---
**Author:** ![Enola\_Gay](https://avatars.discourse-cdn.com/v4/letter/e/3ab097/32.png) [@Enola\_Gay](https://boards.straightdope.com/u/Enola_Gay)\ **Post date:** [August 26, 2018, 1:01am UTC](https://boards.straightdope.com/t/did-stormy-daniels-pay-taxes-on-the-130-000-in-hush-money/820229/29 "2018-08-26T01:01:53Z")
> [@Tim\_T-Bonham.net](#): > > It’s quite likely that the IRS has asked her about it, if it wasn’t on her 2016 tax return. And they may have required her to file an amended return, with this income listed (and probably with interest & penalties added). > > But you & I will not find out about it, because income tax returns are strictly private. If anyone from the IRS talks about it, they could lose their job, and possible face legal charges. She could choose to make her own tax return public, but why would she want to do that? She’s not running for any office, or likely to gain anything from the publicity. I’ve seen her interviewed numerous times & am impressed with her candor–even on topics that make her look bad, she has always been honest IMO. And I think if a journalist asked her about it, that she would answer honestly. My hunch is that she didn’t declare it, but will ultimately pay the tax with fines & penalties. And if she wasn’t before, she is absolutely on the IRS’s radar now. If they haven’t enquired yet, they will. JMO ---
**Author:** ![TokyoBayer](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tokyobayer/32/13989_2.png) [@TokyoBayer](https://boards.straightdope.com/u/TokyoBayer)\ **Post date:** [August 26, 2018, 8:19am UTC](https://boards.straightdope.com/t/did-stormy-daniels-pay-taxes-on-the-130-000-in-hush-money/820229/30 "2018-08-26T08:19:31Z")
> [@Enola\_Gay](#): > > And I think if a journalist asked her about it, that she would answer honestly. My hunch is that she didn’t declare it, but will ultimately pay the tax with fines & penalties. I’m baffled by the question. I can’t recall a news story about other payoffs. For example, with Rielle Hunter and John Edwards, I see that Forbes has [an article](https://www.forbes.com/sites/deborahljacobs/2012/06/04/uncle-sam-got-more-than-john-edwards-from-billionaire-heiress-tax-pros-say/#72aadc3753b7) about the tax implications but don’t ask her if she filed. > [@](#): > > We figure this required her to pay federal gift tax, and also a little-known federal tax known as the generation-skipping transfer tax. Together they more than doubled the cost of her gift, one lawyer estimates. > > (shortened) > > There was testimony at Edwards’ trial that a federal gift tax return was filed, but since Mellon (not Edwards) was required to report the gift, the return was not entered into evidence. Is this something which other recipients are routinely queried about? ---
**Author:** ![Chronos](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chronos/32/134_2.png) [@Chronos](https://boards.straightdope.com/u/Chronos)\ **Post date:** [August 26, 2018, 12:18pm UTC](https://boards.straightdope.com/t/did-stormy-daniels-pay-taxes-on-the-130-000-in-hush-money/820229/31 "2018-08-26T12:18:57Z")
And, of course, it’s quite possible that she did declare it on her 1040, and paid taxes on it, all perfectly above-board. Unless the original hush agreement included a clause that she couldn’t even say anything to the IRS, in which case it would be an illegal contract and completely void. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [August 26, 2018, 7:07pm UTC](https://boards.straightdope.com/t/did-stormy-daniels-pay-taxes-on-the-130-000-in-hush-money/820229/32 "2018-08-26T19:07:16Z")
> [@ZurBob](#): > > If I understand correctly…I give my child 100k (that I’ve already paid tax on) I’ll owe additional taxes on this same money (in excess of the exclusion) simply because I gifted it. Very unlikely. You would have to be VERY rich. And of course the whole thing about estate taxes being taxed twice is mostly fale- most estate taxes are unrealized and untaxed capital gains. ---
**Author:** ![ZurBob](https://avatars.discourse-cdn.com/v4/letter/z/71e660/32.png) [@ZurBob](https://boards.straightdope.com/u/ZurBob)\ **Post date:** [August 26, 2018, 11:45pm UTC](https://boards.straightdope.com/t/did-stormy-daniels-pay-taxes-on-the-130-000-in-hush-money/820229/33 "2018-08-26T23:45:48Z")
Got it. ---
**Author:** ![Quercus](https://avatars.discourse-cdn.com/v4/letter/q/7ab992/32.png) [@Quercus](https://boards.straightdope.com/u/Quercus)\ **Post date:** [August 27, 2018, 1:11pm UTC](https://boards.straightdope.com/t/did-stormy-daniels-pay-taxes-on-the-130-000-in-hush-money/820229/34 "2018-08-27T13:11:52Z")
> [@Chronos](#): > > And, of course, it’s quite possible that she did declare it on her 1040, and paid taxes on it, all perfectly above-board. Unless the original hush agreement included a clause that she couldn’t even say anything to the IRS, in which case it would be an illegal contract and completely void. I’m not sure about the “completely” part of the last sentence. I’m not a contract lawyer, and will concede to anyone who is, but I believe in general, since the main point of the contract isn’t about the IRS and the “don’t tell the public” part is legal, only the bit about not telling the IRS would be void. ---
**Author:** ![OldGuy](https://avatars.discourse-cdn.com/v4/letter/o/3bc359/32.png) [@OldGuy](https://boards.straightdope.com/u/OldGuy)\ **Post date:** [August 27, 2018, 2:36pm UTC](https://boards.straightdope.com/t/did-stormy-daniels-pay-taxes-on-the-130-000-in-hush-money/820229/35 "2018-08-27T14:36:02Z")
> [@Quercus](#): > > I’m not sure about the “completely” part of the last sentence. I’m not a contract lawyer, and will concede to anyone who is, but I believe in general, since the main point of the contract isn’t about the IRS and the “don’t tell the public” part is legal, only the bit about not telling the IRS would be void. Probably true but the “unvoid” remainder of the contract would still prevent\* her from answering a reporter’s question about whether she paid taxes on the money I’d think. - Obviously she’s not prevented, but the contract would claim she would be. ---
**Author:** ![GuyTanzer](https://avatars.discourse-cdn.com/v4/letter/g/48db29/32.png) [@GuyTanzer](https://boards.straightdope.com/u/GuyTanzer)\ **Post date:** [August 28, 2018, 11:11am UTC](https://boards.straightdope.com/t/did-stormy-daniels-pay-taxes-on-the-130-000-in-hush-money/820229/36 "2018-08-28T11:11:50Z")
" Originally Posted by x-ray vision View Post Was your case due to injury or sickness? Cases like those can be tax-free. In the Daniels case, probably not. Complicated, but personal injury probably describes it best. Perhaps that’s why. Thanks for the info." Wouldn’t having sex with Donald Trump count as a personal injury? Handily enough, this week we have the column on Dr. Bronner’s soaps: [Why the weird religious ravings on Dr. Bronner’s soap? - The Straight Dope](https://www.straightdope.com/columns/read/904/why-the-weird-religious-ravings-on-dr-bronners-soap/) ---
**Author:** ![Colibri](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/colibri/32/1841_2.png) [@Colibri](https://boards.straightdope.com/u/Colibri)\ **Post date:** [August 28, 2018, 7:41pm UTC](https://boards.straightdope.com/t/did-stormy-daniels-pay-taxes-on-the-130-000-in-hush-money/820229/37 "2018-08-28T19:41:02Z")
> [@GuyTanzer](#): > > Wouldn’t having sex with Donald Trump count as a personal injury? **Moderator Note** **GuyTanzer** , political jabs are not permitted in this forum. No warning issued, but don’t do this again. > [@](#): > > Handily enough, this week we have the column on Dr. Bronner’s soaps: [Why the weird religious ravings on Dr. Bronner’s soap? - The Straight Dope](https://www.straightdope.com/columns/read/904/why-the-weird-religious-ravings-on-dr-bronners-soap/) Also, don’t post irrelevant links. Colibri General Questions Moderator [Previous page](https://boards.straightdope.com/t/did-stormy-daniels-pay-taxes-on-the-130-000-in-hush-money/820229.md?page=1)