How do sweepstakes/giveaways work?

[Jon|3.7]

I see a lot of things to win a car and never knew how it works, would like some information since it would be awesome to enter these and actually win something

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[TaraFirma]

Wait........Wut?

You enter the sweepstakes with your name, email, address. ect..
When the date for the drawing comes, they draw a name. If they draw yours, you win. If not, thanks for playing/your money.
Didn't think this was that hard.

 

[Jon|3.7]

That's all there is too it?! I was just asking cause I've seen something about taxes ...but if that's it thanks lol

 

[MSMStannyl]

That's all there is too it?! I was just asking cause I've seen something about taxes ...but if that's it thanks lol

Yes, it's that easy to enter usually. As for winning, it depends. You could be responsible for the taxes. Sometimes they may include cash to pay for taxes. Sometimes the drawing may appear to be for a car but the fine print might say "XXXX car or $50,000..." (giving you the option of taking the car or a cash prize worth approximately what the car or whatever would be)

 

[Jon|3.7]

let's say it's a $50,000 car, what would taxes look like price range

Thanks for the additional info msmstannyl!

 

[TaraFirma]

Whatever you win will be considered income. You will have to pay taxes on that income. In the case that they give you say $45k for taxes, that too would be considered income. You just use it for the taxes so you don't have to sell one of the cars you win just to pay the IRS.

 

[TaraFirma]

let's say it's a $50,000 car, what would taxes look like price range

Thanks for the additional info msmstannyl!

Depends on what tax bracket you are in. Worst case, 25-30%

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