I live in California. What are my tax liabilities on a used car that I won as a prize in another state?

Question

Car is registered in that other state. No taxes paid in the other state on items won as prizes in contests.

Answer 1

Federal and CA State income taxes on the declared value of the car, plus CA use taxes and fees when you register it.

If the state where you won it levies an income tax you'll probably owe income tax there as well. In that case you'll take a credit on your CA tax return for the income tax paid to the other state.

Answer 2

an analogous 1099 will be for both state and federal taxes. you should record a quarterly envisioned go back for both state and federal, or you'll owe a wide volume once you record your go back and would also owe consequences. the actual undeniable actuality that the raffle changed into for the great thing about a 501(c)3 charity would not replace your tax criminal responsibility. call the broking service and ask how a lot money you'll choose for the expenditures once you %. up the motorized vehicle. you could also examine with the broking service to ensure if he will money out the bike for you - he would. it will be lots a lot less complicated than attempting to promote it outright, and also you would keep the registration expenditures and sales tax. He gained't grant you with record cost on it, yet someone you would discover to purchase it likely gained't both.

Answer 3

At a minimum, you'll owe federal income tax on the value of the car.