No Free Ride for Space Tourists
By ALICIA CHANG, AP
LOS ANGELES (Jan. 29) – Brian Emmett’s childhood fantasy came true when he won a free trip to outer space. He was crushed when he had to cancel his reservation because of Uncle Sam.
Emmett won his ticket to the heavens in a 2005 sweepstakes by Oracle Corp., in which he answered a series of online questions on Java computer code. He became an instant celebrity, giving media interviews and appearing on stage at Oracle’s trade show.
For the self-described space buff who has attended space camp and watched shuttle launches from Kennedy Space Center, it seemed like a chance to become an astronaut on a dime.
Then reality struck. After some number-crunching, Emmett realized he would have to report the $138,000 galactic joy ride as income and owe $25,000 in taxes. Unwilling to sink into debt, the 31-year-old software consultant from the San Francisco Bay area gave up his seat.
…The IRS declined to comment, saying it does not talk about individual matters.
Click here to read the full story.
That sucks! Leave it to the ruthless IRS.
Someone should initiate a pledge drive for him. Or Oracle should cover the taxes.
If Oracle gave him money to pay the income tax, he’d have to pay tax on the gift he was given to pay the tax.
Any American with a decent job can afford $25K for his life’s dream. It is a matter of priorities.
I think you miss the real answer. Now his dream is near-reality, he realizes he is afraid to go. Nothing wrong with that, it is easy to be a little boy dreaming about being an astronaut. It is different to actually take the risk and do it.
If Oracle hired him at say $1 a year, the space flight would become part of his work responsibilities and maybe would not be a benefit.
I wonder if BC declared a income on the market value of the services which ML gave him for free? I doubt it. As with so many things, it’s a question of interpretation or, in the case of government departments, bloody-mindedness.
Yeah, for my childhood dream, I would find a way to get the $25K. I think he realized that this would only whet his appetite and not actually fulfill his dreams. I thinks it’s pretty much an up and down type of thing. It doesn’t last very long and I would have to question if the $25K was worth it. Now, for a week on the space station..?