retail value?

Question

i wanted to enter a sweepstakes to win an xbox 360(simpsons)
i just dont understand what retail value is??is wat u have to pay when u win the prize??

5. PRIZES: Ten (10) Limited Edition Simpsons Movie Xbox 360 Console.
The approximate retail value --("ARV") of each Prize is $399. Winners will be responsible for any and all federal, state, and/or local taxes resulting from acceptance of the prize, and cannot assign or transfer the prize to another person. No cash or prize substitution is allowed except at the discretion of Sponsor. All prizes will be awarded. If a prize cannot be awarded due to circumstances beyond the control of Sponsor, a substitute prize of equal or greater retail value will be awarded. Except where prohibited by law, by accepting any prize, winners consent to the use of their likeness, photograph, name, or voice for advertising and publicity purposes in any and all media worldwide (including winner list) by Sponsor, Fox Entertainment Group, and Twentieth Century Fo

Answer 1

Retail price is the price you would purchase an item from a store----the retail price is used for TAX PURPOSES... if you WIN a prize, you do NOT pay for the prize, but if they tell you the retail price OF that prize, you can usually figure out what SALES TAX and any possible INCOME TAXES you may have to pay---all taxes for prizes MUST be paid... If you win something that costs UNDER $600, you USUALLY do not pay a tax (at least in NY State anyway) any prize with a RETAIL PRICE VALUE of OVER $600 IS taxed at the current tax rate for your state so, if you won something that was $650 in say Albany NY.... the sales tax is 8% so it would be 650X 8% or $52 in sales tax that would have to be paid at the time you won the prize. Anything over $1000 that you win is treated as extra INCOME on your income tax return and you would add it on the OTHER INCOME line of your state and federal tax returns when you file yours.....

Answer 2

Generally, retail price is the Suggested Retail Price from the manufacturer. What you are responsible for is any Federal, State or Local Income Tax that would be due on that amount of money. Since the prize amount is less than $600, the sweepstakes monitoring company is not required to issue a IRS 1099 form, but they are required to tell you that it is to be considered as "Income", when you file your Tax return information.

Answer 3

retail value is market price--common
now if I needed a carrot to dangle in front of a donkey so I could ride it to town....I would purchase the first carrot for $1.00---and I would purchase a pachage of seeds for 25 cents....take the seeds home--plant them--approximately 60 seeds/60 carrots----0.0042 of a cent each....and I would not have to pay retail for more carrots.....

Answer 4

retail value is the price at which the item will likely be sold.