For instance, it's a wedding package, and I don't need retail value of $1000 worth of valet parking, or $8000 wedding invitations.
I just want the honeymoon, catering, location. rings etc..
additionaly, I assume I can reject prize upon winning it, if I don't sign for it?
2007-02-01 04:53:06 · 2 answers · asked by -AD 1 in Business & Finance ➔ Taxes ➔ United States
I understand paying taxes on a car? that's a no brainer and a car is something that is tangible, and you can transfer ownership/sell.
none of services in this packages is transferable, and half of which i have no use for. seems like services on internet are treated differently, for instance i don't pay tax on website hosting fee.
2007-02-01 05:04:15 · update #1
They will probably send you a 1099 with the value of the prize (they SHOULD). That's the amount you must report and pay taxes on. I don't know about rejecting the prize.
Remember all the cars that Oprah "gave" away. They had to pay taxes on the car.
2007-02-01 04:58:05 · answer #1 · answered by Dizney 5 · 0⤊ 0⤋
The price you win in contest is considered an income for tax purposes and you need to pay taxes on it.
2007-02-01 04:58:13 · answer #2 · answered by onlinetaxsiteswatch 2 · 0⤊ 0⤋