According to an article published today in several media outlets including Fortune magazine, George Clooney once gave 14 of his friends $1 million dollars cash. The article also claims that Clooney paid the taxes on all of it so his friends could accept the money tax-free.
The friend group, dubbed “The Boys,” reportedly helped support Clooney when he first came to Hollywood, letting him sleep on their couches and offering additional support. The Ocean’s Eleven star said he wanted to let them know how important they were to him.
As a kicker, Gerber added, Clooney said he also had paid the group’s taxes.
How is this possible? First of all, how did Clooney know everyone's tax rate, and second of all, if he paid the taxes for them, isn't that an additional gift - incurring yet additional gift taxes?