taxes on the giveaway car? gift tax? lottery?

S

simple

New Member
Joined
May 29, 2001
anyone know how this works out?

i have heard stories of people winning vehicles and having to pay thousands of dollars in taxes.
 
I had wondered about that, always see that on price is right. folks think they win car outright and go to pick it up to find out they gotta pay all taxes and fees.

IM working at home today and chomping at the bit till 8pm tonight...do a little work... poke around on board
 
Maybe in KY....

You could *buy* the car for $100 (lowest allowed) and only pay taxes on that. If you won it, I would give a CPA a call and see how you could offset those winnings. If you spend X in taxes because of the win, then X on lottery tickets could be an expenses or loss in gambling and offset the original taxes.

I will let you guys know, when I win the car:)
 
It all depends on the state. I think in many states you pay sales tax on what you paid but if it's too far below the blue book value you have to pay tax on the blue book value. Then in some states there's the family clause where you don't have to pay tax if it's from a family member or something. Anyway, you'd have to look up your state.

Really not sure why I listed the actual price I paid on the bill of sales considering edmunds says the car is worth like $1500-2000. On the other hand, KBB says its over $15,000. Granted, the registry doesn't know if it's a turbocharged motor or not so they would probably look at the lower bluebook value.
 
The person who wins the car should have to pay federal income taxes on the book value of the car, much like if you had won a car on a game show or if you had won lottery. Fortunately since its a Turbo Regal, the book value is probably pretty reasonable. The state income taxes on winnings will vary state by state. This won't be due upon receipt of the car, like a Million dollar lottery where taxes are withheld, it will go on your tax return. You might be able to delay the claiming the car so you claim it in 2008 and not have to pay taxes until April 2009.

You will also have to pay whater state sales tax, excise etc, that you might have to pay for any car purchase as well.
 
Take the title to the DMV, they will blue book it for ~$4,500 and you will pay approx. $225.00 in taxes.
 
dgoodhue said:
The person who wins the car should have to pay federal taxes on the book value of the car, much like if you had won a car on a game show or if you had won lottery. Fortunately since its a Turbo Regal, the book value is probably pretty reasonable. The state taxes on winnings will vary state by state. This won't be due upon receipt of the car, like a Million dollar lottery where taxes are withheld.

You will also have to pay whater state sales tax, excise etc, that you might have to pay for any car purchase as well.
Click to expand...

Kelley Blue Book - Suggested Retail Pricing Report - Buick, Regal
 
We are "GIVING THE CAR AWAY" We did not require you to donate, that was strickly an option.

I think it will be up to you how to handle your tax situation. Depends on the State, each one has different rules.

BTW, I know who the winner is:wink:
 
Well would it be legit if the person that "WON" it "Bought" for $100 and gave Brian $100 on pick up...and...lets say that Brian donates his $100 to TFT:D ;)
 
SGRIM said:
We are "GIVING THE CAR AWAY" We did not require you to donate, that was strickly an option.

I think it will be up to you how to handle your tax situation. Depends on the State, each one has different rules.

BTW, I know who the winner is:wink:
Click to expand...

You are Harsh...Hey its 11:30PM here where I am deployed at in the Middle East. You are late posting the winner.:biggrin:
 
I'll deal with the taxes later on, I'm more concerned with picking the car up right now :D
 
Welby said:
I'll deal with the taxes later on, I'm more concerned with picking the car up right now :D
Click to expand...

I figure it will take me about 6 hours to get down there, so I'll leave early in the morning with a few cases of Corona, hang out with Bweavy for a bit, load the trunk up with a few more parts for my other T and then head on up the road. That is, unless Bweavy want's to drink a few of those Corona's right then, then I might have to find a local hotel. :biggrin:
 
SGRIM said:
We are "GIVING THE CAR AWAY" We did not require you to donate, that was strickly an option.

I think it will be up to you how to handle your tax situation. Depends on the State, each one has different rules.

BTW, I know who the winner is:wink:
Click to expand...

You only THINK you know :biggrin:

If he or she does not claim it within 24 hrs. then they are Not the winner ! :eek:

I know what you are thinking : ..... :mad: smartass :mad:

:biggrin: :biggrin: :biggrin:
 
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