2007-04-08 19:29:54 · 2 answers · asked by Flo D 1 in Business & Finance ➔ Taxes ➔ United States
Any gameshow winnings or tv prizes, etc are fully taxable and the IRS enforces the taxes on them. If you think back a year or so ago, Richard Hatch, the guy who won Survivor went to jail because he didn't report his prize money as income.
Winning cars, home remodels, etc you are liable for taxes on the fair market value of the goods you win. Oftentimes people have to sell off the car or prize they win because they can't cover the income taxes on the prize.
If the company were to give you money to cover the taxes, that would be income as well and would also be taxable, and the circle would go round and round. Typically the show doesn't cover any taxes at all.
2007-04-08 20:23:59 · answer #1 · answered by Harley N 3 · 1⤊ 1⤋
The recipients are liable for all taxes. In the case of EMHE, the show's producers do provide additional funds to cover the taxes and (usually) retire any mortgages. That's also taxable to the recipient but is usually enough to leave them owing only the property taxes on the home once all is said and done.
2007-04-08 20:38:04 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋