Sounds criminal to me.
Gift taxes were probably not a topic discussed on the yacht or around the campfire during the Harlan Crow-subsidized luxury vacations for Supreme Court Justice Clarence Thomas and his wife, Ginni. But maybe they should have been.
Recent reports indicate that Crow provided Thomas’ grandnephew with tuition to a pricey boarding school in the 1990s. Thomas did not report this gift from Harlan Crow as required on his annual disclosure forms. But that is nothing new. ProPublica had previously reported on multiple luxury vacations provided to Justice Thomas and his wife via Crow’s yacht and jets—including an island-hopping junket in Indonesia that ProPublica valued at $500,000.
That Thomas has made multiple lapses in ethical judgment in not reporting the receipt of such valued largesse from Crow is something for him, SCOTUS, and now Congress to muse over.
But what about Crow’s judgment? Did he file gift tax returns and pay gift taxes on any of the gifts he provided to the Thomas family?
It is a reasonable question to ask, and Sen. Ron Wyden (D-OR) appears to have formally done so, with a reported due date of a response May 8. In lieu of gift taxes, did Crow expense the value of the trips and tuition provided the Thomases on either personal or business income tax returns? Wyden wants to know.
If Crow took business expense deductions for the above referenced “gifts,” then he can’t claim they were gifts. And if that’s the case, he wouldn’t have had to file gift tax returns which—given a potential tax rate of up to 40 percent—would represent a pretty price for the billionaire real estate magnate.
The criteria for what constitutes an untaxed gift that exceeds the limit to avoid paying tax vary by year. For example, the limit was $13,000 per recipient in 2013, but $17,000 in 2023. The Indonesian junket—valued at over $500,000 by ProPublica—would generate gift taxes of approximately $200,000 for Mr. Crow.
Harlan Crow and Clarence Thomas Are About to Learn About Gift Taxes
The billionaire’s generosity to the Supreme Court justice and his family raise a whole lot of questions about whether the “gifts” were declared properly.Gift taxes were probably not a topic discussed on the yacht or around the campfire during the Harlan Crow-subsidized luxury vacations for Supreme Court Justice Clarence Thomas and his wife, Ginni. But maybe they should have been.
Recent reports indicate that Crow provided Thomas’ grandnephew with tuition to a pricey boarding school in the 1990s. Thomas did not report this gift from Harlan Crow as required on his annual disclosure forms. But that is nothing new. ProPublica had previously reported on multiple luxury vacations provided to Justice Thomas and his wife via Crow’s yacht and jets—including an island-hopping junket in Indonesia that ProPublica valued at $500,000.
That Thomas has made multiple lapses in ethical judgment in not reporting the receipt of such valued largesse from Crow is something for him, SCOTUS, and now Congress to muse over.
But what about Crow’s judgment? Did he file gift tax returns and pay gift taxes on any of the gifts he provided to the Thomas family?
It is a reasonable question to ask, and Sen. Ron Wyden (D-OR) appears to have formally done so, with a reported due date of a response May 8. In lieu of gift taxes, did Crow expense the value of the trips and tuition provided the Thomases on either personal or business income tax returns? Wyden wants to know.
If Crow took business expense deductions for the above referenced “gifts,” then he can’t claim they were gifts. And if that’s the case, he wouldn’t have had to file gift tax returns which—given a potential tax rate of up to 40 percent—would represent a pretty price for the billionaire real estate magnate.
The criteria for what constitutes an untaxed gift that exceeds the limit to avoid paying tax vary by year. For example, the limit was $13,000 per recipient in 2013, but $17,000 in 2023. The Indonesian junket—valued at over $500,000 by ProPublica—would generate gift taxes of approximately $200,000 for Mr. Crow.
