5 Things You Probably Didn’t Know About Santa’s Tax Return

 

5 Things You Didn't Know About Santa's Tax Return

 

What about Santa’s taxes?     Here’s a few things I bet you haven’t thought about before.

1.  Given that Santa travels about 75 and a half million miles a year (mostly on December 24th) his mileage deduction (at 54.5 cents per mile in 2018) is $41,147,500.

 

2.  Reindeer are depreciated over a period of 7 years.

 

3.  North Pole elves are considered employees and receive W-2s.   Elves outside of the North Pole are considered contract labor and receive 1099s.   (There are people who work as “elves” outside the North Pole that work for other organizations–like at the mall, who receive W2s, but they are not real elves and are not employed by Santa himself.)

 

4.  Because the elves live at the North Pole for the convenience of their employer, and since living at the North Pole is a condition of employment, elf lodging is not taxable to the elves.

 

5.  Santa doesn’t actually make any money from his toy distribution operation.  Most of Santa’s income comes from royalties from his guest appearances in movies, books, and television commercials.

 

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Footnotes:

1.  Santa’s distance traveled:  The Physics of Santa,  http://www.daclarke.org/Humour/santa.html

 

2.  Reindeer depreciation:  IRS publication 225 Farmer’s Tax Guide

 

3.  Elves are employees:  Common Law Rules of employment, http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Self-Employed-or-Employee

 

4.  Elf housing:  IRS publication 15B  Employer’s Tax Guide to Fringe Benefits

 

5.  Santa’s income from royalties:   https://en.wikipedia.org/wiki/Royalty_payment

Santa Gets a Double Check

Reindeer at Santa's Reindeer Round-Up

Roberg Tax Solutions will be closed for business this Christmas. You know how Santa makes his list and checks it twice, don’t you? Well his list is really long this year and since we’re experts at double checking — guess who Santa called to help? Besides, the price was right – we work for Santa pro bono. (Besides, the cocoa is so good up here it’s worth it!)

May you have a very Merry Christmas and a Happy, Healthy and Profitable New Year!

Now if you’re familiar with my website, you know I hardly ever let anybody post links on my blog. But I’m putting these in just for some holiday fun.

If you want to learn about Snowy, a rare white reindeer, here’s that story:
http://www.dailymail.co.uk/news/article-2070791/Rare-snow-white-reindeer-puts-Whitby-garden-centre-visitors-mood-Christmas.html
The picture of the baby reindeer is just too cute.

If you’d like to track Santa through Norad on Christmas Eve, here’s a link to their website:
http://www.noradsanta.org/en/index.html

Switching holidays; for a fun Hannukah Music video listen to the Maccabeats sing “Miracle” here:
http://www.youtube.com/watch?v=oHwyTxxQHmQ&feature=related