The IRS includes anything in income that is considered an "ascention to wealth," or "found treasure." An agressive interpretation of tax law would consider these gifts to be in exchange for labor, and therefore subject to self-employment tax. Examples of swag include:
- Bertolli Oven Bake Meals
- Nespresso LeCube Coffee Machine
- Hydrofillia Body Lotion
- Palm Centro Cel Phones and Accessories
- D’Annunzio Fine Jewelry\
- Miscellaneous Clothing
- Tons of other stuff
Many recipients donate their items to charities. In that case, the celebrity would have to include the FMV of the item in income on Line 21 of Form 1040 and then claim a charitable contribution to offset the income. This treatment can result in a limited or reduced deduction due to the itemized deduction reduction or AGI limitation of charitable contributions.
If you are a celebrity and need tax advice, what are you doing trying to find it on a blog? If you really need help, feel free to call me. I probably won't believe that you are who you say you are, but try it anyway!