2007-05-28 02:58:12 · 3 answers · asked by mark g 1 in Business & Finance ➔ Taxes ➔ United States
The casino will issue you a 1099MISC for the amount of your prize, or a W2-G if the prize is in fact gambling winnings. The amount on the tax document is the income reported to the IRS. Hopefully this will be the lowest price that the car has been offered for sale.
If you can document that this car was sold for less than the amount on your W2-G/1099MISC, you could ask the casino to re-issue the document.
If the car is gambling winnings, document other gambling losses for the year. You can deduct gambling winnings up to the amount of gambling losses. That way, you zero out the federal income tax on the car.
In addition to federal income tax, you will owe state tax. You may have to file state income tax returns for your home state and for the state in which you won the car. You may get a credit to your home state tax for tax paid to the other state.
Also, you may have to pay sales tax, and title fees depending on the casino, when you take delivery of the car.
2007-05-28 03:37:11 · answer #1 · answered by ninasgramma 7 · 1⤊ 0⤋
You have to pay the sales tax as if you bought the car full price.
2007-05-28 03:06:35 · answer #2 · answered by Anonymous · 0⤊ 0⤋
To tag onto ninasgram's answer, you can only deduct gambling losses if you itemize - and you need a log showing ALL of your gambling activity, wins and losses, for the year. Collecting losing lottery tickets won't do it.
2007-05-28 03:55:42 · answer #3 · answered by Judy 7 · 0⤊ 0⤋