Talk about good luck

[BimmerDriver]

The last time I won a sweepstakes, I got a can of car wax.

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[m3incorp]

Sorry, but lottery/contest winnings don't work like that. Maybe I read wrong and you mean that it is above $30k when you add in the WI state tax to the federal tax . Also, guess what happens to your income earnings for that year when you file your taxes.

Good for the young man. Thrilled to see a young enthusiast get an opportunity at what many would consider a grail car. And he gets to have it in his youth and make sore memories. Cool contests by Stang



30k No way. I might be missing a few fees but I know this much, WI State tax on a car is 5.6%. The states DMV title fee is $164.50. Annual registration fee is $85.

 

[Sigma6]

Sorry, but lottery/contest winnings don't work like that. Maybe I read wrong and you mean that it is above $30k when you add in the WI state tax to the federal tax . Also, guess what happens to your income earnings for that year when you file your taxes.

it’s gonna depends largely on what the 1099 states (fair market value). No one has to pay sales tax when receiving a gifted vehicle, but the person giving the car away may have to pay a gift tax, depending on the value of the car.

On the federal side, who knows maybe the young man is putting the gt500 into service as a business vehicle? Which would make the tax implications more diluted.

I just don’t know if there’s enough info to automatically jump to the conclusions he’s on the hook for 30k in taxes from this.

 

[jpro]

it’s gonna depends largely on what the 1099 states (fair market value). No one has to pay sales tax when receiving a gifted vehicle, but the person giving the car away may have to pay a gift tax, depending on the value of the car.

On the federal side, who knows maybe the young man is putting the gt500 into service as a business vehicle? Which would make the tax implications more diluted.

I just don’t know if there’s enough info to automatically jump to the conclusions he’s on the hook for 30k in taxes from this.

I'd pay $30K for a brand new GT500 though. LOL

I have seen that some of the sweepstakes for cars and other high priced items also throw in cash to cover the cost of taxes. Wonder if this was the case with this 500...

 

[m3incorp]

Yes, there are a lot of ifs, so I wouldn't put too much thought into it. This started out as just a casual comment. I still congratulate the young man, regardless.

it’s gonna depends largely on what the 1099 states (fair market value). No one has to pay sales tax when receiving a gifted vehicle, but the person giving the car away may have to pay a gift tax, depending on the value of the car.

On the federal side, who knows maybe the young man is putting the gt500 into service as a business vehicle? Which would make the tax implications more diluted.

I just don’t know if there’s enough info to automatically jump to the conclusions he’s on the hook for 30k in taxes from this.

 

[ORRadtech]

it’s gonna depends largely on what the 1099 states (fair market value). No one has to pay sales tax when receiving a gifted vehicle, but the person giving the car away may have to pay a gift tax, depending on the value of the car.

On the federal side, who knows maybe the young man is putting the gt500 into service as a business vehicle? Which would make the tax implications more diluted.

I just don’t know if there’s enough info to automatically jump to the conclusions he’s on the hook for 30k in taxes from this.

Well, I started this tangent and I agree, there's not enough info for the winner's tax liability to be known. I just took a WAG and said $30k. I hope something worked out for him but who knows?
I do doubt that there's a gift tax paid by the giver. First, it's not a gift, it's contest winnings. Casinos don't pay gift tax on anything you win from them but, if it's big enough, they sure do withhold that 30% tax money.
Second, it was a give away for his YouTube channel and as such probably an advertising expense.

I'd pay $30K for a brand new GT500 though. LOL

I have seen that some of the sweepstakes for cars and other high priced items also throw in cash to cover the cost of taxes. Wonder if this was the case with this 500...

Oprah did that a few years ago when she gave the whole studio audience of one show a car. Apparently some of the winners couldn't come up with enough money to accept the car. The media got wind and the next thing you hear is that she ponied up the money for taxes too.
I'm unclear on how that would work though. I'd think it would just add to the winnings??

 

[Interceptor]

In Europe they have VAT which according to member here is outrageous. Between Federal, State, City, property and income tax ... can you imagine the cost of VAT when it is voted in?
Might be for sale soon.

 

[526 HRSE]

Stangmode gave away a 2020 GT500. Was it this car?

Those aren't tiny people. How do they fit in this car? My 10 year old is cramped in the back seat.

 

[mustang5o]

I've researched this a couple of times and winning a car would be just like winning a lottery prize. The value they assign on the 1099 is taken as income for the year. So if this guy had no income and they value the car at $100,000 he is now shown to be making $100,000 for the year. In the current tax bracket that puts it at 24% (federal). State and local taxes could be additional. AT $100,000 that $30,000 was a good guess. Some organizations require some fees/taxes to be paid up front. Read this: https://shelbyamericancollection.tapkat.org/wina2020ShelbyGT500/rules

Congrats to that guy though!

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