I had a usual day today kinda stressful and glad to be home. Then I recieved a call from the Awards office and they told me I won a 2006 Cadillac Escalade. Needless to say I was excited, then I once agian realized that sales tax and all of this... I told the Chevrolet dealer that I won it from that the proceeds from me selling it immediatly would do many things one of which was get my Ford project truck further off of the ground. They told me that the only thing I could do as far as getiing rid of it was trading it in on a different chevy or something like that so they said they would buy it back from me...My dad told me that was the funniest thing he ever heard. selling a brand new suv 4x4 leather the works to fix up my rusty old truck. I just thought that U fellas might also get a kick out of it. What ever it was it is a blessing from God that in the end I came out ahead, and really that is what is most important.
Most people don't have a clue as to what it costs to "win" something of some value. Say that Escalade sold for $50K, you would get a 1099 from the company giving it and that means you have to pay income tax on that amount. Then theres sales tax and probably some others thrown in there for the government to make a buck. That "free car" could end up costing almost as much as the purchase price
I had a buddy that won a party barge that almost sent him to prison. He didn't pay his income tax, ferderal or state. Then the tax man cometh. Here's his formula: Party barge - (Federal Income Tax + Social Security Tax + Federal Unemployment Tax + Federal Penalties + Federal Interest + State Income Tax + State Unemployment Tax + State Sales Tax + State Penalties + State Interest) + Selling Party Barge = Almost $10,000 in the hole. Took him 5 years to pay for that gift.
If you play it right and pay your taxes. You could sell that toy suv and come out with enough to make it worthy. Only problem is that alot of prize vehicles are leases. You ain't gonna get nothin' but taxes out of that.
I am going to do alright I talked to my accountant and have already set money aside for the feds and am going to make a little cushoin for retirement, emergencies whatever really I was suprised how little it was though. Uncle sam made some money again.