AMERICAN757
Posts: 440
Joined: Sat Mar 24, 2001 12:31 pm

Winning A Car (or Anything)

Sun Mar 16, 2003 2:37 pm

When you win a car, does anybody like the IRS take any money or anything from you. I was told they take lots of money in taxes. Could anybody enlighten me.
 
desertjets
Posts: 7563
Joined: Fri Feb 18, 2000 3:12 pm

RE: Winning A Car (or Anything)

Sun Mar 16, 2003 3:20 pm

Like any income, winnings from sweepstakes, lotteries, or The Price is Right is subject to local, state, and federal taxes.
Stop drop and roll will not save you in hell. --- seen on a church marque in rural Virginia
 
AMERICAN757
Posts: 440
Joined: Sat Mar 24, 2001 12:31 pm

RE: Winning A Car (or Anything)

Sun Mar 16, 2003 3:40 pm

how much do they usually take?
 
jwenting
Posts: 9973
Joined: Mon Apr 23, 2001 10:12 pm

RE: Winning A Car (or Anything)

Sun Mar 16, 2003 4:03 pm

Don't know about the US, but here they take 25% of any prize money from lotteries over about €400.

In the past that has led to people having to sell the cars and appliances they'd won for far under the market value and actually loosing money on winning a lottery.
Now most organisers will pay that tax for you (so on paper the prize would be a €20000 car + €6000 in cash).
I wish I were flying
 
AMERICAN757
Posts: 440
Joined: Sat Mar 24, 2001 12:31 pm

RE: Winning A Car (or Anything)

Mon Mar 17, 2003 3:58 am

ohhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh, i dont like that. Last night I was talking with the mayor of my town on the way home about how I have entered to win like five Mercedes this year, and he was talkin about how much they take in taxes and crap. So i thought i Would get more details from yall.
 
desertjets
Posts: 7563
Joined: Fri Feb 18, 2000 3:12 pm

RE: Winning A Car (or Anything)

Mon Mar 17, 2003 6:04 am

I also think as a minor, you may in fact be ineligible to win a shiny new Benz... though luck.
Stop drop and roll will not save you in hell. --- seen on a church marque in rural Virginia
 
AMERICAN757
Posts: 440
Joined: Sat Mar 24, 2001 12:31 pm

RE: Winning A Car (or Anything)

Mon Mar 17, 2003 7:15 am

as a minor i have parents who will take it and put it under my name when i turn sixteen.
 
captaingomes
Posts: 6251
Joined: Tue Feb 13, 2001 1:33 am

RE: Winning A Car (or Anything)

Mon Mar 17, 2003 7:49 am

PHEW! Thankfully I didn't win that Ferrari I entered to win!  Big grin
"it's kind of like an Airbus, it's an engineering marvel, but there's no sense of passion" -- J. Clarkson re: Coxster
 
sleekjet
Posts: 2006
Joined: Sat Jul 28, 2001 1:35 am

RE: Winning A Car (or Anything)

Mon Mar 17, 2003 8:04 am

I've won numerous trips (someday, I'll reveal my secret). The corporation doing the giveaway puts a value on the gift and alerts the IRS as to the amount. The winner is also alerted and the value is added to your adjusted gross income.
II Cor. 4:17-18
 
AMERICAN757
Posts: 440
Joined: Sat Mar 24, 2001 12:31 pm

RE: Winning A Car (or Anything)

Mon Mar 17, 2003 8:55 am

you can email me ur secret Sleekjet. PLEASE!!!!????
 
FlyingTexan
Posts: 2998
Joined: Tue Jan 07, 2003 8:30 am

RE: Winning A Car (or Anything)

Mon Mar 17, 2003 11:36 am


I have a customer who won a 2002 Toyota Tundra V8 Extended Cab, fully loaded. She had to pay a gift tax of something like $6,000 to $8,000 in gift taxes – I can’t recall exactly how much. This lady received a $5.00 raffle ticket as a birthday present from her daughter (raffle was church sponsored).

When I was in college, a 19-year old classmate won 5 Million Dollars in the Texas Lottery. She picked the 20 annual payment option. I am sure her tax bracket jumped several levels. (Oh, BTW - she drove a Blue Chevy Silverado, no MB or A8L).

Sleekjet, are those junkets Timeshare sales pitches?

JR FlyingTexan
"Wouldn't your boss like to fly home nonstop at 4:30 on a Friday afternoon?" -Airline Exec to Congressional Staffer
 
AMERICAN757
Posts: 440
Joined: Sat Mar 24, 2001 12:31 pm

RE: Winning A Car (or Anything)

Mon Mar 17, 2003 11:46 am

lol time shares, thats great.
 
skyhawk
Posts: 1011
Joined: Sat May 19, 2001 12:23 pm

RE: Winning A Car (or Anything)

Mon Mar 17, 2003 12:09 pm

The amount you pay in taxes is based(I think) on your income bracket.
 
AMERICAN757
Posts: 440
Joined: Sat Mar 24, 2001 12:31 pm

RE: Winning A Car (or Anything)

Mon Mar 17, 2003 12:32 pm

so if i make for example, ummm 150,000 a year, i will pay how much now in taxes if i win a Mercedes ML350
 
avt007
Posts: 1989
Joined: Mon Jul 10, 2000 4:51 am

RE: Winning A Car (or Anything)

Mon Mar 17, 2003 3:38 pm

Probably the only good news tax-wise in Canada- lottery winnings are completely tax free (not that it has made any difference to me!)
 
ryanb741
Posts: 5058
Joined: Thu Mar 28, 2002 6:36 pm

RE: Winning A Car (or Anything)

Mon Mar 17, 2003 7:02 pm

Well, when we lived in Australia we won a sports car. Also, my father won a BMW in Dubai Airport a couple of years ago - they actually flew him to DXB to pick up the car, but he just sold it in Dubai and kept the money.

In the UK there is no tax on prize winnings AFAIK
I used to think the brain is the most fascinating part of my body. But, hey, who is telling me that?
 
MD-90
Posts: 7835
Joined: Mon Jan 17, 2000 12:45 pm

RE: Winning A Car (or Anything)

Mon Mar 17, 2003 7:11 pm

My grandmother a car at Sonic (the drive-in chain) once, back in the early 80's. Best driving car I've EVER driven.

Of course, it only had 3.5 horsepower, and the same single wheel both drove and braked the go-cart. Hehe...it had an ugly fiberglas body shell that was supposed to look like a 427 Shelby Cobra, but we never left it on. Great car...
 
IHadAPheo
Posts: 5499
Joined: Mon Sep 17, 2001 3:26 pm

RE: Winning A Car (or Anything)

Wed Mar 19, 2003 1:56 am

American757 not to dim your hopes of winning but....

In most cases the rules in contests to win a car state that the winner must be over 18 and a licensed driver to win. So if you did "win" and you do not meet the requirements of the contest rules you would be disqualified.

Yours,
IHadAPheo
Pray hard but pray with care For the tears that you are crying now Are just your answered prayers
 
srbmod
Posts: 15446
Joined: Tue Mar 20, 2001 1:32 pm

RE: Winning A Car (or Anything)

Wed Mar 19, 2003 4:30 am

In general, the combined taxes (state and Federal) usually amount to approximately 40% + or - a few % of the total value of the prize won. So let's say you won $100,000 dollars on a lottery ticket; after taxes, you will come out about $60,000. At casinos, most of them require you to fill out a tax form if your winning exceed a certain amount (usually $5000 of more) and you are supposed to report that on you taxes, and pay the appropriate taxes. Just about every contest requires the winner to cover the taxes. Most people don't report the taxes on stuff like concert tickets or stuff worth less than $500, even though they are supposed to.

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