Taxing the Super Bowl

There’s an article on Fox Business which explores the hefty tax bill that the IRS gets to collect from Tom Brady as a result of winning the Super Bowl.  There is a lot of accurate information in that article, but there is a point on gift tax which is incomplete at best.  Forbes has an article which gives a much more thorough explanation of gift tax and the tax treatment of prizes and awards.  Although most of you do not have to worry about what taxes you will owe because of winning the Super Bowl, anyone interested in gift tax can learn some basics from those articles.  I would be happy to answer any questions on the topic or you can contact a competent professional in your area such as an Enrolled Agent or CPA.