A lady just won a new Audi convertible on Price is Right.

If someone gave me a free $157,000 car, I'd be rather happy. But I understand there isn't a car waiting for you in the parking lot ,but a chit from a dealer. there are lots of fees, costs, etc. Plus, you get killed at tax time. Most winners sell the chit for a lot less than the price of the car. Still ain't a bad day, if you win.
 
Having won some stuff on a game show I can tell you that the IRS is not waiting for you in the parking lot. In the US, game show winnings are taxed as ordinary income because you are considered to have worked to obtain them. They are not "gifts."

For tax purposes their value is pegged at "fair market value" rather than the often vastly inflated retail value that the shows proclaim. So you own taxes on the amount you could reasonably negotiate to buy (or sell) that item for, brand new.

By the end of the year you have to pony up state and federal taxes.

My guess is that this person will negotiate with the dealer to not take delivery of the car. Maybe bargain it down to $100K in cash from the dealer in lieu of her taking the car, and which is how much she will have to then declare on her income taxes.
 
Pappy said:
Biggest winner ever on Price. The car cost $157.000 plus she won $10,000 by getting the game right. Wow...but taxes are going to be high for that car.
Click to expand...
The unfortunate part to all of this, the insurance would be through the roof on such an automobile, and my guess is, 99% of those who win such rides, A, would fail to appreciate what they have, B, wouldn't maintain it as it should be maintained, and C, wouldn't drive it like it deserves to be driven.

Easy come - easy go. Nothing means nothing when you don't have to work for it.
 
I read an online article that many game show contestants don't even take their prize/prizes. Many times, contestants forget they signed a form about paying taxes BEFORE they can receive their prize/prizes. They can't afford the tax bill they get in the mail from the game show accounting department, so they refuse the prize.

Some might get a bank loan or their family helps them pay the tax, but many just plainly refuse the prize.
 
ClassicRockr said:
I read an online article that many game show contestants don't even take their prize/prizes. Many times, contestants forget they signed a form about paying taxes BEFORE they can receive their prize/prizes. They can't afford the tax bill they get in the mail from the game show accounting department, so they refuse the prize.

Some might get a bank loan or their family helps them pay the tax, but many just plainly refuse the prize.
Click to expand...
Not true. You get a 1099 at the end of the year from the production company.

If the prize can be resold on the open market it would be foolish to refuse it. Perhaps luxury vacations wouldn't be transferable, but automobiles certainly are. Some of the "all contestants receive XYZ" are garbage products that some may refuse.

I remember getting coupons for $25 of Liva-snaps. My dog hated them. I wound up giving them away to people on the pet food aisle.
 
You must log in or register to reply here.
Back
Top