Did Stormy Daniels pay taxes on the $130,000 in hush money?

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.

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.

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.

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.:confused:
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

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

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 about the tax implications but don’t ask her if she filed.

Is this something which other recipients are routinely queried about?

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.

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.

Got it.

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.

" 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: https://www.straightdope.com/columns/read/904/why-the-weird-religious-ravings-on-dr-bronners-soap/

Moderator Note

GuyTanzer, political jabs are not permitted in this forum. No warning issued, but don’t do this again.

Also, don’t post irrelevant links.

Colibri
General Questions Moderator