I didn't win anything, but if you won a brand new car on a game show would you report it on your taxes?
OT- If you won a car, would you report it on your taxes?
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I'm almost certain its reported to the IRS directly by the show. And you would get a W-2G
You wouldn't have a choice - the entity awarding the prize has to issue you a 1099.
On a game show you do not have a choice. You only receive the net value. I know someone that won an RV on a game show and had a choice of net value cash or pay taxes on delivery of RV. Idiot took the RV. Used it once and sold it 6 months later for less than what he paid on the luxury tax.
If you didn't, you could drive the new car straight to prison. This was a problem years back for winners on Wheel of Fortune and Price is Right, with contestants getting into big trouble for not paying taxes on prize winnings. I think something was implemented at the game shows themselves to report prizes and declare taxes, similar to gambling winnings at the track or in casinos.
This is why I always use stolen identities when I enter game shows.
My wife went to the Martha Stewart show and it was the Christmas gift idea show. So after watching someone talk about 10 gift ideas the gave all of the members of the audience 1 of each gift. Everything they gave out was nothing I would of ever bought. Stupid things like an inflatable bed/ air mattress, a Coby portable DVD player (had 3 already) and a few other items. End of the year I received a 1099 for over $1000 which ended up costing me $300 in taxes. There is no such thing as free.
Should you hit a trifecta at the track that pays over 600-1 you will be taxed immediately. The IRS steals 25% right off the top, you are sent a 1099 and have to pay the balance. I am not sure if winning something on a game show is the same as winning at the track. With the track win you can subtract any other bets, lottery.
If you win the 50:50 at a Rutgers football game, they don't hand you a wad of $35,000 cash. They hand you a tax form, and after the form is filed they mail you a check.
What's the unofficial tax reporting value for casino winnings, if, say, I was playing table games?
What a curse it was to catch this baseball
http://taxprof.typepad.com/taxprof_blog/2007/08/more-on-tax-con.html
http://taxprof.typepad.com/taxprof_blog/2007/08/more-on-tax-con.html
Wouldn't the ball be worth $5 unless it's sold. Then take the sales price less $5 to figure out the capital gains? Then tax would be only be owed when sold?
As others have said, the company awarding the prize will issue you a 1099. The government also gets a copy of this 1099 so they already know about your increased income for the year. It will be very easy for the IRS to catch you if you don't put it on your tax return.
My aunt and uncle , who already owned one at the time, won two Cadillacs at two different temples in Jersey over a 3 year period back in the 60's. I asked my aunt this same question when she was 98 , the last time I saw her ,and she just smiled. ☺ She just passed at 103 and took her dirty little secret with her. Good for you Aunt Minnie
Rage against that machine
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Rage against that machine
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If a company pay someone over $500, they are required to give them a 1099 form at year end for tax purposes. I won some money at a bad beat table on the poker room for $1,800 and received a 1099.
At one of my locations, I had to issue a 1099 for someone who won a crystal glass bowl over $500 since HQ wanted us to give one. Other companies usually let it slide, especially Super Bowl trips for sales representatives but customers normally had to receive a 1099 worth a couple thousands.
At one of my locations, I had to issue a 1099 for someone who won a crystal glass bowl over $500 since HQ wanted us to give one. Other companies usually let it slide, especially Super Bowl trips for sales representatives but customers normally had to receive a 1099 worth a couple thousands.
My sister and her husband won a few years ago, That was one hell of a bowl trip that year. Details will not be shared to protect the innocent.
A friend of mine won both cash and prizes on a show. He was given the chance to not accept the prizes, which he didn't want, and just pay taxes on the cash. He left the prizes behind. Why pay the taxes on something you don't really want unless you can somehow sell them and make a profit?
I also understand that many of the "free" trips are priced at the maximum for effect. But, in many cases you could probably have gotten it for a lot less. I wonder if you can pay less in taxes if you can show that it was available for less?
I also understand that many of the "free" trips are priced at the maximum for effect. But, in many cases you could probably have gotten it for a lot less. I wonder if you can pay less in taxes if you can show that it was available for less?
I came 1/2 inch away from winning an escalade pick up in golf outing on about 170yd hole. Hit 10 feet behind hole was coming back directly at hole and stopped 1/2 inch short dead center of cup. Would have been my first and only hole in one. I've come close plenty just couldn't get one to drop
Veteran high rollers at the track take this into consideration when betting. For example, instead of placing a $100 bet on a 10-1 shot that would trigger a 1099 should the horse win, they will place 10 $10 bets.
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you would think the fair thing would be not to collect a tax on a $5 baseball till it is sold..... taxing it at any point in time is all guess work....plus it pretty much forces someone to sell the ball, and maybe a real fan would rather have just kept it...
I agree. You don't pay taxes on bonds until you cash them in. An exotic art piece or a rare baseball should work the same way.
Technically, you're supposed to report all casino winnings, which are taxed at 25%, above certain thresholds for different kinds of gambling. However, if you're not in some "official" sanctioned event, the only one who knows what you've won is you and, well, you can let your conscience be your guide. Casinos usually take the 25% right off the top for sanctioned events, however, you can get that money back if you itemize and report losses equal to the winnings - I've had to do that a few times when I won or cashed out significant amounts in poker tournaments.
http://blog.turbotax.intuit.com/income-and-investments/how-are-gambling-winnings-taxed-8891/
