for a car costing around 30-40g..how much would taxes amount to if you won one for free?
i heard during the 'oprah give away' many people decided to sell the cars because of the large tax costs
2007-02-05 14:08:01 · 4 answers · asked by Julio 4 in Business & Finance ➔ Taxes ➔ Other - Taxes
yeah it depends on your state sales tax rate thats how they decide how much you have to pay for taxes ------for example---- $30,000 car at 8% tax rate would be $2,400 you would have to pay ... hope this helps
2007-02-05 14:17:07 · answer #1 · answered by ldysugar 3 · 0⤊ 0⤋
You would pay gift taxes on the value of the car. In most places that would be at the normal tax rate. Selling prizes to pay the taxes is not that unusual. If you don't think that is fair, you might be surprised to know that many people who inherit their parent's business have to sell them to pay the taxes.
2007-02-05 14:16:29 · answer #2 · answered by united9198 7 · 0⤊ 0⤋
The taxes and fees involved would be paid to the state so it would depend on what state you were in and what the state tax rate is. Also, states vary a little on additional fees.
2007-02-05 14:12:46 · answer #3 · answered by cinsingl83 3 · 0⤊ 0⤋
It would depend on what tax bracket you'd end up in.
As a round number, start with 20%.
2007-02-05 14:11:08 · answer #4 · answered by ckm1956 7 · 0⤊ 0⤋