Comments on: That other inevitability http://www.newspacejournal.com/2007/01/29/that-other-inevitability/ Tracking the entrepreneurial space industry Fri, 12 Sep 2014 14:33:32 +0800 hourly 1 https://wordpress.org/?v=4.0.38 By: Sam Dinkin http://www.newspacejournal.com/2007/01/29/that-other-inevitability/comment-page-1/#comment-70838 Tue, 30 Jan 2007 05:20:09 +0000 http://www.personalspaceflight.info/2007/01/29/that-other-inevitability/#comment-70838 Our cash co-prize for suborbital is $100k. Microsoft’s $50k cash-coprize for their $253,500 prize will, like Oracle, leave their winner in the hole as much as $35k. People in the $250k+ tax bracket pay 35% taxes. If the winner flies in the first six months or in the front seat, it’s $303,500 including the tax gross up check which is taxable. That leaves the winner needing to cough up another $50k. We’ll see how this develops. The winner might declare only the wholesale price, might sit in the back seat, might defer delivery until the flight’s cheaper or might shop around for a discounted seat from all the sources to tell the IRS a different value.

There are several ways that have not yet been explored to defray income taxes for prizes. One would be for the prize recipient to promise to repay the prize giver in which case, it’s just a loan. This is one of the ways how politicians avoid paying taxes. Another is to do some science or business a la Greg Olsen. A third would be to ask RpK or NASA to hire you to be an astronaut a la John Glenn.

]]> By: Charles Lurio http://www.newspacejournal.com/2007/01/29/that-other-inevitability/comment-page-1/#comment-70820 Tue, 30 Jan 2007 04:28:06 +0000 http://www.personalspaceflight.info/2007/01/29/that-other-inevitability/#comment-70820 Space Shot Inc., (Now at the website freespaceshot.com) covers the tax with a cash prize also.

]]> By: Ferris Valyn http://www.newspacejournal.com/2007/01/29/that-other-inevitability/comment-page-1/#comment-70561 Mon, 29 Jan 2007 17:39:12 +0000 http://www.personalspaceflight.info/2007/01/29/that-other-inevitability/#comment-70561 Anyone know how Spaceshot is handling the tax issue?

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