Chip Foose stang giveaway

[Charles147]

As I understand it many many winners of cars and items like that sell them on the spot. You have to pay not only taxes and fees on the car (just like you do when buying it) but the IRS considers the prize as income and you must pay income tax on the value of the car. Many winners don't have the money for the taxes and fees and will take a pennys-on-the-dollar offer by someone immediately after the give away without ever actually owning the vehicle..

I don't really understand the process but to me this doesn't make total sense...

First, in order for the winner to sell it they must own it, meaning pay the taxes and fees. So regardless it's still income to the IRS. What do I know though :shrug:

The only reason they sell it is because they want cash in hand and not a material item. And if they sold it and collected $$$ from a buyer, I think that would still be considered income earned by the IRS.

Sponsored

 

[MichaelKael]

I don't really understand the process but to me this doesn't make total sense...

First, in order for the winner to sell it they must own it, meaning pay the taxes and fees. So regardless it's still income to the IRS. What do I know though :shrug:

The only reason they sell it is because they want cash in hand and not a material item. And if they sold it and collected $$$ from a buyer, I think that would still be considered income earned by the IRS.

Unless it's cash probably ?!

 

['Merica]

As I understand it many many winners of cars and items like that sell them on the spot. You have to pay not only taxes and fees on the car (just like you do when buying it) but the IRS considers the prize as income and you must pay income tax on the value of the car. Many winners don't have the money for the taxes and fees and will take a pennys-on-the-dollar offer by someone immediately after the give away without ever actually owning the vehicle..

Yep, my dad and I were looking at a Viper in the late 90s in Charlotte that a guy won on a Mountain Dew cap. This used car dealership bought/sold high end cars and the guy lined them up to buy the car and pay the taxes, etc before he even took delivery.

 

[Charles147]

Yep, my dad and I were looking at a Viper in the late 90s in Charlotte that a guy won on a Mountain Dew cap. This used car dealership bought/sold high end cars and the guy lined them up to buy the car and pay the taxes, etc before he even took delivery.

So are you saying the guy that won verbally (guy A) told the prize authority to give to another person (guy B) to sign the paperwork. Guy B pays guy A in cash in hand (on the side undisclosed) and guy A never claims the cash as income earned?

If the prize authority allows this, I guess it's possible...I would think the prize authority would say guy A has to sign some legal documents that he was the winner of a 70k prize...At that point Guy A can sell to Guy B but regardless he's going to pay taxes because the prize authority has to report to IRS.

*SMH*

 

['Merica]

So are you saying the guy that won verbally (guy A) told the prize authority to give to another person (guy B) to sign the paperwork. Guy B pays guy A in cash in hand (on the side undisclosed) and guy A never claims the cash as income earned?

If the prize authority allows this, I guess it's possible...I would think the prize authority would say guy A has to sign some legal documents that he was the winner of a 70k prize...At that point Guy A can sell to Guy B but regardless he's going to pay taxes because the prize authority has to report to IRS.

*SMH*

Yep, from what we were told the actual winner of the car never drove it. He contacted the used lot and they agreed to buy it (probably for next to nothing), and I'm guessing they both set something up with the prize authority. It had like 6 or 8 miles on it if I remember correctly.

 

[danny0441]

id give it to my pops hes the reason why i love mustangs if he doesnt want it id sell it and pay mine off and buy some more aftermarket stuff even though im sure hed want it

 

[Charles147]

Yep, from what we were told the actual winner of the car never drove it. He contacted the used lot and they agreed to buy it (probably for next to nothing), and I'm guessing they both set something up with the prize authority. It had like 6 or 8 miles on it if I remember correctly.

Wow. Man I would apply for a credit card cash advance or something before I'd give something up like that for next to nothing. I guess he was broke and no credit though. Dang, hopefully that lil bit of changed lead him to recovery.

Guess I should have a wad of cash at winning events (e.g. Cash Bash drawings) and see if a winner will sell their prize for some quick green.

 

[jmstang66]

As I understand it many many winners of cars and items like that sell them on the spot. You have to pay not only taxes and fees on the car (just like you do when buying it) but the IRS considers the prize as income and you must pay income tax on the value of the car. Many winners don't have the money for the taxes and fees and will take a pennys-on-the-dollar offer by someone immediately after the give away without ever actually owning the vehicle..

I won my 2012 Mustang...let me tell you about the taxes and fees for the value of the car that they consider income :doh:

 

[Khyber]

as self employed. I pay taxes regardless...so i'm used to taking it in the ass over taxes from the gov. Won't even buy me dinner first...just straight to rape.

 

[moto111]

To bad no one on this site will win it lol

 

[Old Car Guy]

If........

If I happened to win this car I would give it, to my Daughter..... I have a real nice 2015 GT Mustang........ But this is just me........ Thanks John :cheers:

 

[EcoSwag1990]

If I happened to win this car I would give it, to my Daughter..... I have a real nice 2015 GT Mustang........ But this is just me........ Thanks John :cheers:

lol very karma-friendly response

 

[skeeter]

This car is an auto yea?

You guys, i would drive this thing...I can't believe all the sell and finish my car talk.

It is such a pain in the ass trying to figure out FI options for me. Honestly I may just stay na......unless I win me some whipple.

For noobs like me throwing down a chunk of supercharger cash for the first time is some nerv racking stuff.

 

[Roman]

I'd sell it and take the money for a down payment on a house.

 

[Rickycardo]

If I happened to win this car I would give it, to my Daughter..... I have a real nice 2015 GT Mustang........ But this is just me........ Thanks John :cheers:

If I could win this I'd keep it (taxes, fees and crap not withstanding). I'm already giving my 15 to my grand daughter in 10 years. At 6 she already called dibs. :cheers:

Sponsored