Tax Issues from Happy Gilmore Film

Tax Issues from Happy Gilmore Film

Happy Gilmore film is about the way to earn money of a guy, named Happy, to get back the house for his grandmother. The house is seized by the IRS because his grandmother has not paid her taxes for many years. As a result, his grandmother is forced to temporarily move into a retirement home. Happy wants to buy back the house, but he does not know how to earn enough money. By accidents, Happy realizes that he has talent in playing golf. This leads him to decide to join the Pro Golf Tour, which is the only way that he can earn enough money for buying back the house. Gone through many difficulties and hardship during the time the tournament took place, ultimately Happy wins the tour championship and takes back the house. After watching the film, I can identify eight tax issues.

The first tax issue is the non-paying tax issue to which Happy’s grandmother has to face. In the movie, Happy’s grandmother has not paid her taxes for many years. She owes $270,000 to the IRS. As a consequence, the house of his grandmother is seized. His grandmother is forced to temporarily move into a retirement house. Happy and his grandmother have only 3 months to pay the tax debt or else the house will be sold.

The second tax issue is related to the $40 amount that moving guys use as a challenge for Happy to hits the golf ball 400 yards three times. Because Happy win the challenge, the $40 amount will be taxable income to Happy according to All-Inclusive Income Concept. Moreover, according to Legislative Grace Concept, personal expense is not allowed to deduct from adjusted gross income except itemized deductions. Thus, the moving guys cannot deduct $40 from their taxable income because the $40 expense is a nondeductible personal expense.

The third tax issue occurs when Happy becomes a screen actor in Subway’s advertising film. Happy is loved by many audiences because of his talent as well as his spirit in playing golf during the tournament. As a...