GenVibe - Community for Pontiac Vibe Enthusiasts

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Bed rest sucks but Bob Barker's always there for ya The down side to winning a car is paying the tax but then again "It's a brand new car!!!!!!"Cheers and hope you are doing well.Andrew

winning a car on a game show is turns out to be a 60% off sale!!

And don't forget about your pets

Quote, originally posted by zionzr2 »winning a car on a game show is turns out to be a 60% off sale!!As it is with just about any sweepstakes unless you are in the no or lowest tax brackets. Some of the prizes wouldn't be worth paying the tax on. However a recent recent Cooper Tire sweepstakes where you win 4 tickets to 5 bowl games with private jet transportation includes $8,800 cash which will pay the bulk of the tax on this prize with an estimated retail value of $37,310.

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Quote, originally posted by micheles_bad_vibe »looks like someone really did their research.... If you are talking about the $37,310, that was the number stated in their rules - not from any research I did. I would have guessed that tickets for 4 to five major bowls, hotel and private jet transport would cost more than $25,510 (37,310 - 8,800 cash = value of bowl trips) but I don't have any experience in the cost of chartering private jets. Used to ride in one on occasion when I was a corporate lawyer. That is the way to go - they really are "ready when you are". You can bet that I have my entry in on this sweeopstakes - I'd be happy just to get the runner-up prize of $500 off a set of Cooper Tires to replace my orig equip Conti's!

it looks like resrch..

Heh, maybe that dude will someday end up here on GenVibe!

The bad thing about winning large ticket items is that you have to pay the IRS a 40% gift tax. Example: The guy that won that 1.5 Million dollar 2005 HGTV Dream Home now owes the IRS $600,000 in gift tax. He was going to open a B&B, but the city ownes that land and the lake it is on he can't because the lake is a major source of the cities drinking water. So, he is trying to sell it. Bummer!.

It is not the Gift Tax. Gift tax is paid by the person who gives the money or other article of value and the gift usually does not result in an immdeidate tax due because of the combined estate and gift tax credit. A sweepstakes prize is not a "gift". It is income. Therefore the fair market value of a sweepstakes prize is subject to income tax at the federal and probably at the state level depending on where you reside. I think the highest federal bracket is now 35% or so. State would add perhaps 5% so the total of 40% might be right. If this winner could only get $900,000 for that property he would have a good argument that the fair market value was not the $1.5 mil but rather $900,000.Something I do not remember - whether it is considered self employment income subject to FICA tax. That would add another 15.6% to the soc. sec. max, and then 2.6% above that for the medicare tax. Seems to me if you won it just be having your name drawn in a drawing it would not be self employment income, but perhaps uf you won it by exercising some degree of skill such as on the Price is Right or Wheel of Fortune it might be considered self employment income.

Bummer So you win a new house and poof, your tax bracket changes and the tax man at your door.The irony here in Canada is that Lotto, gambling or prize winnings are not taxed. Irony cause everything else here is. Heck, we've got federal tax on the provincial tax: a canabilistic tax system. Why I just learned Canada applies a 30 per cent import tax on bicycles. Doh!

Quote, originally posted by vibe-04 »Bummer So you win a new house and poof, your tax bracket changes and the tax man at your door.The irony here in Canada is that Lotto, gambling or prize winnings are not taxed. Irony cause everything else here is. Heck, we've got federal tax on the provincial tax: a canabilistic tax system. Why I just learned Canada applies a 30 per cent import tax on bicycles. Doh!And Canada goes through some kind of charade that requires a winner of a sweepstakes to successfuly complete a timed demonstraton of skill - it is usually a math question. The requirements in Quebec are such that most companies give up and just sasy "Void in Quebec".

Yeah, I've never understood that. Multiply 2 by 5 subtract 6 and device by 2???? I'll check into why:> goofy? That's my Canada for ya

I always liked how when they were giving the contestant the rundown about the car's various features/options/etc they would say "and California emissions!!!" like that's a highly desirable option package.

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Quote, originally posted by micheles_bad_vibe »sweet! they're getting something that's required!!lol! Very true! Pity that the old lady who just won that car lives in Omaha or something!