Tom - the offer to pay taxes on the cars would also constitute "income from any source" as defined by the code.Chris.
Oprah tells these jerks....here's a car that sells for nearly $30,000,00...it's yours FREE.
Read on as to the attitude and idiocy displayed by some of the 276 recipients. Oracle
Oprah's car giveaway not totally 'free'
September 22, 2004BY LUCIO GUERRERO Staff Reporter
Oprah called the show part of her "wildest dreams" season.But for many of the 276 recipients of the new Pontiac cars that the talk-show queen gave away last week, there was a bit of reality to come with that dream -- they are going to have to fork over thousands of dollars in taxes.It turns out that free car wasn't so free.That's because while Pontiac agreed to pay for most of the local charges -- things like state sales tax and licensing fees -- the recipients have to report the cars as income once tax time comes.By adding $28,500 to someone's income, it can push them into a higher tax bracket -- which means they will have to pay about 25 percent or more of the car's value in taxes. And for a nearly $30,000 car, that probably means, for most of the recipients, shelling out $7,125 for the "free car." And if you live in Illinois, you can expect to tack on another 3 percent or so in state income taxes."It's not really a free car, it's more of a 75 percent off car," said Susan Nelson, who was one of three Wheaton College public relations staffers at the show. "Of course, that's still not such a bad deal."Some of the winners, contacted by the Chicago Sun-Times on Tuesday, said they were thinking about the taxes as soon as the announcement came that they would be getting the new cars."Some of the people who knew me, my smile looked a little bit forced when I was up there [on the show]," said William Toebe, a suburban Green Bay resident who was at the taping. "That's because paying the taxes was the first thing that popped into my head.""As I was standing up there, the responsible portion of me said, 'This is very nice, but where am I going to get the money for the taxes.'"Toebe, who runs a farm, is already thinking of getting rid of the car, though he has yet to pick it up. Luckily, the recipients weren't given the car on the spot so they can at least start to save now. Although Oprah seemed to have the winners choose their cars from an enormous lot filled with Pontiac G6 sedans, the cars will actually be delivered to a dealer near each winner's home. Some recipients are going to wait a few months before actually picking up their cars so they can figure out how to pay for the taxes."We have to pick the car up between Oct. 1, 2004, and Feb. 28, 2005," said Nelson. "We've decided that we are going to wait until the first of the year so we can have all of 2005 and the first four months of 2006 to figure out how to pay for this."Heather Lundeen, a physical therapist in Bismarck, N.D., said she has looked into getting a car loan to pay off the taxes.The tax shock is not much different from the bill that comes to many game show winners. The Internal Revenue Service requires game shows -- and every other large gift giver and casino -- to report winners to the federal government. It is then the responsibility of the winner to fess up on their tax forms.But most of the winners still think they got a pretty sweet deal."Whenever I get something for free, I always think 'What's the catch?'," said Tiffany Self, one of the three Wheaton College co-workers who went to the show. "It's actually a blessing. I mean how often will you get a brand new car for $7,000?"Copyright 2004, Digital Chicago Inc.
Oprah could have kicked in for the taxes, the cars didn't cost her anything. That would have made a better story.
I'm sure many game show winners sell cars at a loss to cover the tax and pocket some cash.
Well, Some people may not be able to afford it. Same as when people do not pick up their claim from winning a car or atv via lottery. Still alot of expenses.
Poor babies, what's that old saying about not "looking a gift horse in the mouth."Decline acceptance!charlie
Charlie, right on!One did not attend the taping expecting a car. The fact that Oprah milked mileage out of the stunt enhanced her future earnings potential as the Feel Good Maven. Anyone in the audience is free to accept the gift -- and pay taxes -- or to reject it and face no tax liability. What abunch of whining weenies. Of course, the lady from Hancock County in the audience will face a double whammy if she takes the car because the State of Maine will charge her excise tax based on the sticker price of the gift car, not the price of her ticket into the Oprah taping which was nil.
TOM O....your reply, without going into all the particulars, simply sets my senses on fire. Is this the way you always think?Oracle
Guess I miss your point, Oracle.charlie
quote:Originally posted by Oracle:
[b]TOM O....your reply, without going into all the particulars, simply sets my senses on fire. Is this the way you always think?Oracle[/b]
I mean if you're gonna do it do it right, that's all--Of all the topics discussed in this forum, this one lights you up? Ungrateful as it may sound, the taxes on such a 'gift' are a problem for some.
Lighten up, uh?
Here's an idea....sell the car, pay the taxes, take what's left and buy whatever car that amount will cover. Net result, you get a free car, if not the one you originally thought.
Aw Mel, don't tell them. They would never have figured that out on their own.