Saturday, October 10, 2009

Obama Peace Prize Tax Deduction

So President Obama wins the peace prize. Seems a little early in his administration but we all wanted him to get it. The Nobel Peace Prize comes with a very serious cash award which is welcome by almost all manner of recipients. President Obama to his credit claims he will donate the funds to charity. This should generate a nice tax deduction. But will he claims the Peace Prize as income or is this considered to be a non taxable windfall. If its not taxable income and he gets a tax deduction, the US citizen just subsidized a peculiar manoeuvre in personal finance.