Listening to bits and pieces of the president's speech today as i drove, I heard the part where he said he had only one house, and the one he was living in was loaned to him by the american people.

My mind went immediately to the tax treatment. I know a lot of jobs that include housing have to include the value of the housing as compensation. For example, someone who works as an apartment manager often has a free or discounted apartment, and i believe they are supposed to include the FMV of that in their income. I wonder what the FMV of the White House would be.

Presumably, there is an exception for the President not only for the house, but the use of the private jet (Air Force One) and the limo service, or a lot of former presidents would owe a lot of back taxes.

Does anyone know how this is handled?

A friend who has a good background in governement compensation tells me it is surprising what a president is supposed to pay out of pocket - personal food and dry cleaning for example. Just never thought of that before.

FTR, before certain people jump on me, I have no problem with providing a house, etc, to any President at no cost. I just wonder how it fits in the Tax Code.

Not taxable because provided on the job site for the convenance of the employer.

(02-09-2009 02:56 PM)OptimisticOwl Wrote:  Listening to bits and pieces of the president's speech today as i drove, I heard the part where he said he had only one house, and the one he was living in was loaned to him by the american people.

My mind went immediately to the tax treatment. I know a lot of jobs that include housing have to include the value of the housing as compensation. For example, someone who works as an apartment manager often has a free or discounted apartment, and i believe they are supposed to include the FMV of that in their income. I wonder what the FMV of the White House would be.

Presumably, there is an exception for the President not only for the house, but the use of the private jet (Air Force One) and the limo service, or a lot of former presidents would owe a lot of back taxes.

Does anyone know how this is handled?

A friend who has a good background in governement compensation tells me it is surprising what a president is supposed to pay out of pocket - personal food and dry cleaning for example. Just never thought of that before.

FTR, before certain people jump on me, I have no problem with providing a house, etc, to any President at no cost. I just wonder how it fits in the Tax Code.

(02-09-2009 04:45 PM)75Owl Wrote:  Not taxable because provided on the job site for the convenance of the employer.

So, Leebron's housing is tax-exempt too then?

ETA: I assume that wasn't the "president" you were talking about, OO.

(02-09-2009 05:46 PM)erice Wrote:  

(02-09-2009 04:45 PM)75Owl Wrote:  Not taxable because provided on the job site for the convenance of the employer.

So, Leebron's housing is tax-exempt too then?

ETA: I assume that wasn't the "president" you were talking about, OO.

True, but i think 75Owl is a tax expert, so his explanation not only makes sense, but is probably right.

Good question about Leebron.

Now what is the difference taxwise in the transportation (car and driver, airplane and pilot) provided the president and the limo provided to Dashele?

(02-10-2009 02:15 AM)OptimisticOwl Wrote:  Now what is the difference taxwise in the transportation (car and driver, airplane and pilot) provided the president and the limo provided to Dashele?

With Daschle, it wasn't a question of his use of the car service; it was a question of his use of the car service for personal use.

For president of the United States, what constitutes personal use? Presumably taking the kids to school is personal use... but on the other hand, the president and his family are required to be protected by the Secret Service, and the president is always presumed to be on official business or on his way to/from official business unless he is going to a campaign event.

If he is going to a campaign event, the campaign (either his, or the national party) pays for the use of Air Force One at a rate that, as of a few years ago, was $68,000/hour [ETA units. Units are important]. More usually, the President will combine a campaign stop (fundraiser at the Houston Ritz Carlton, for example) with an official visit (e.g. touring a jobs program for Ike victims). When that is done, the party/campaign pays half of the expenses for Air Force One.

Campaigns also pay for security at their events, but I'm not sure how much that is.

So, the political stuff is paid for, the rest of the president's actions are official business... I think the only thing remaining is the family, and I'm sure that's covered somewhere in statute. That said, I don't recall seeing it on the 1040:

Question 25a: Did your employer provide you or your family with transportation and security protection for personal use?
Question 25b: Are you or your spouse the President or Vice President of the United States?

If you answered yes to 25a, but no to 25b, please enter the value of personal transportation and security provided to you ______

(02-12-2009 03:17 PM)texd Wrote:  

(02-10-2009 02:15 AM)OptimisticOwl Wrote:  Now what is the difference taxwise in the transportation (car and driver, airplane and pilot) provided the president and the limo provided to Dashele?

With Daschle, it wasn't a question of his use of the car service; it was a question of his use of the car service for personal use.

For president of the United States, what constitutes personal use? Presumably taking the kids to school is personal use... but on the other hand, the president and his family are required to be protected by the Secret Service, and the president is always presumed to be on official business or on his way to/from official business unless he is going to a campaign event.

If he is going to a campaign event, the campaign (either his, or the national party) pays for the use of Air Force One at a rate that, as of a few years ago, was $68,000/hour [ETA units. Units are important]. More usually, the President will combine a campaign stop (fundraiser at the Houston Ritz Carlton, for example) with an official visit (e.g. touring a jobs program for Ike victims). When that is done, the party/campaign pays half of the expenses for Air Force One.

Campaigns also pay for security at their events, but I'm not sure how much that is.

So, the political stuff is paid for, the rest of the president's actions are official business... I think the only thing remaining is the family, and I'm sure that's covered somewhere in statute. That said, I don't recall seeing it on the 1040:

Question 25a: Did your employer provide you or your family with transportation and security protection for personal use?
Question 25b: Are you or your spouse the President or Vice President of the United States?

If you answered yes to 25a, but no to 25b, please enter the value of personal transportation and security provided to you ______

Thanks, Tex. should have thought of that myself. Or looked it up on my turbotax. AFAIAC, the president is on the job 7/24/365, no matter where he is or what he is doing.

I wonder where Obama and his family will go for their 'getaways', what some mistakenly call vacation. Chicago doesn't seem like a good choice.

Hawaii was his choice post-election. I think that will be fairly common, though he could wind up with another location, too.