MySpace Political Reality Show Raises Serious Tax, Election Law Issues

Interesting article on Statesman.com:  MySpace Plans Election Reality Show, by Mike Kelly:

MySpace will launch a political reality show called "Independent." The show, expected to air in early 2008, is a reality-based competition in which MySpace users will select a candidate whom they think best represents the voice of Americans. Candidates for the show will be chosen from videos submitted to MySpace. After being selected, the candidates will face trials resembling a real election, such as town hall debates or confronting protesters. Prominent national politicians, whom Berman did not name, will participate as mentors, giving advice and support when the candidates struggle with such issues as constituent relations and campaign crises.

The winner will get the standard reality show prize of $1 million. But there's a catch: He or she must donate the money to a political action group or a current presidential candidate, or fund a personal run for the White House.

MySpace may be saddling the winner with serious tax and election law issues.  On the tax side, the winner may have $1 million income with no offsetting deduction.  And the winner would have to be careful to not run afoul of the $2,300 contribution limitation.  (Hat Tip:  Donald Tobin.)