Rande Gerber, husband of Cindy Crawford, recently told a TV program that George Clooney gave $1 million to 14 of his long time buddies four years ago. Clooney invited his friends to his house for dinner and presented each of them with an expensive leather suitcase.
When the friends opened them, each found $1 million in $20 bills. Clooney told them he had appreciated their friendship and wanted to help those who were struggling. He also said he had paid their taxes on the gift. Gerber did not want to take the money, but Clooney said no one would get their money if Gerber did not take his.
Several points:
1. This generosity resulted in a gift tax of $3.0 million to Clooney. In 2013, gifts to an individual in excess of $14K and beyond the $5.25 million exemption were taxed at 35%.
2. Despite his statement about paying their taxes, Clooney was obligated to pay the gift tax – the donor is always liable for the gift tax owed.
3. Having won the lottery twice – marrying Cindy Crawford and selling his Casamigos Tequila brand for $700 million – Gerber donated his million to charity to keep his good karma flowing.
Photo Credit: Reuters
License: Fair Use/Education
