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Lady won a 1965 Ford Mustang notch back with 289 V8 and power steering painted black with white leather interior. They said the value is $15,000. Lucky _itch.
My understanding is when you win a car on The Price Is Right, you still are responsible for paying the taxes on it. From what I've heard, most who win cars on the show, don't have the cash for it, and don't end up taking said car home. So even though she won, there's a chance she went home without her prize.
You pay the sales tax when you register the car. If you can't afford the registration you could still drive it home and put it up for sale without having to pay any fees, so I can't see anyone leaving a car behind.
And what they charge for sales tax varies by state as well. In Iowa you pay sales tax based on the actual purchase price of the car, so if it was won in a contest you would pay no sales tax. In some states it goes by the age of the car or the sticker price (or a percentage of the original sticker price for a used vehicle). I don't think any state goes by the "book" value of a used car, but I could certainly be wrong.
Retail items are different, though. Appliances, furniture, TVs, trips, etc all have to have sales tax based on the retail rpice before they are released.
You pay the sales tax when you register the car. If you can't afford the registration you could still drive it home and put it up for sale without having to pay any fees, so I can't see anyone leaving a car behind.
And what they charge for sales tax varies by state as well. In Iowa you pay sales tax based on the actual purchase price of the car, so if it was won in a contest you would pay no sales tax. In some states it goes by the age of the car or the sticker price (or a percentage of the original sticker price for a used vehicle). I don't think any state goes by the "book" value of a used car, but I could certainly be wrong.
Retail items are different, though. Appliances, furniture, TVs, trips, etc all have to have sales tax based on the retail rpice before they are released.
That's only one small part of it. Anyone who wins a prize like that has to claim the value as income to the IRS. Win a $15,000 car and the IRS treats it like you won $15,000 in cash and you owe taxes on that amount. Depending on your income, witholding, etc. it can be a really big deal for people who win large dollar prizes like that. Of course no one is just going to leave the prize there, but the majority end up selling them so they can cover the tax liability to the IRS and end up walking away with some cash. Any local/state taxes owed are just piled on top of that. If selling it is not possible and there is no way you can cover the taxes, you end up with no choice but to forfeit the prize which absolves you from the liability.
The best example of this was the Oprah Pontiac G6 giveaway. This article from CNN sums the situation up nicely.
For a brand new Pontiac G-Six, the model given away on the show, the sticker price is $28,500. The $28,500 would need to be claimed as income so, depending on the individuals tax bracket, the tax could be as high as $7,000. And that was after Pontiac agreed to pay most of the local charges, including state sales tax and licensing fees.
That's only one small part of it. Anyone who wins a prize like that has to claim the value as income to the IRS. Win a $15,000 car and the IRS treats it like you won $15,000 in cash and you owe taxes on that amount. Depending on your income, witholding, etc. it can be a really big deal for people who win large dollar prizes like that. Of course no one is just going to leave the prize there, but the majority end up selling them so they can cover the tax liability to the IRS and end up walking away with some cash. Any local/state taxes owed are just piled on top of that. If selling it is not possible and there is no way you can cover the taxes, you end up with no choice but to forfeit the prize which absolves you from the liability.
The best example of this was the Oprah Pontiac G6 giveaway. This article from CNN sums the situation up nicely.
But it wouldn't be collected on the spot - I assume the winner would receive a 1099 - so it shouldn't prevent someone from taking his or her prize home unless the thought of being liable for the income tax was too intimidating (entirely possible).
I can't think of many prizes, other than a non-transferrable vacation package or something like that, that couldn't be sold for more than enough to cover the income tax.
But it wouldn't be collected on the spot - I assume the winner would receive a 1099 - so it shouldn't prevent someone from taking his or her prize home unless the thought of being liable for the income tax was too intimidating (entirely possible).
I can't think of many prizes, other than a non-transferrable vacation package or something like that, that couldn't be sold for more than enough to cover the income tax.
I take it you never had a big win at the horse races or in Vegas.
Thanks! Gave the car to my ill husband who does love it!
Quote:
Originally Posted by sailordave
Lady won a 1965 Ford Mustang notch back with 289 V8 and power steering painted black with white leather interior. They said the value is $15,000. Lucky _itch.
I am blessed to have won this wonderful classic for my husband. He is a Veteran who deserved this gift. Thanks so very much to the Price is Right show.
My understanding is when you win a car on The Price Is Right, you still are responsible for paying the taxes on it. From what I've heard, most who win cars on the show, don't have the cash for it, and don't end up taking said car home. So even though she won, there's a chance she went home without her prize.
Come on Down.
I loved winning this classic car. As I said on the show which aired on April 27th 2012, I won this car for my ill husband. He so derserved it. At that point I didn't care about the taxes, I was just thrilled that I had the opportunity to be a part of the show. Everyone was fantastic from the producers, camera crew, to Drew, to the gal Amber who explained the taxes which was worth every penny to see the pride and smiles that the 65' classic pony brings my husband.
Great life experience. My husband was born in 1965, Karma
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Thanks! Gave the car to my ill husband who does love it!
