Have heard many bad things over the years about contestants, and winnings, on game shows .... I guess they are true.. ?? I never had a chance to find out first hand. 
Anyone ever experienced this dilemma?
http://shine.yahoo.com/work-money/price-8230-taxes-high-174700410.html
:lol:
The hubby and I used to talk about winning big prizes, never knowing our assumptions - that winning a car, vacation home, or any other large item meant selling the prize to cover the new tax burden - were correct!
It seems that cash prizes are actually more valuable than product prizes. The taxes on cash are easier to pay. All you have to do is pay the taxes with part of the prize money, with little or no effort. Of course, there are always people who want to rent the limo and immediately go on a dream vacation, with my husband being one of them. We have worked out a compromise, in the off chance we win a prize worth more than our mortgage.
My plan is to see an attorney firs,t before picking up the check, and creating a trust. All of the money goes to the trust, first. We celebrate on the interest. Our compromise? See the attorney, create the trust , pick up the check, pay off our mortgage,
then rent the limo and go to a local resort for 3 days with the balance of prize money going into the trust.
A product prize, like a house pr vacation package, actually create hardship. The winner must convert the prize into cash, by selling it or renting it out, to cover the new tax liability. The effort this takes sucks the profit margin down to zero, if you are lucky!
