Newport Viper
Enthusiast
NT
What are the tax implications of winning the Raffle?
- Thread starter Newport Viper
- Start date
Ulysses
Enthusiast
For you it would be California sales tax. Im not sure about luxury and gas guzzler taxes, but I would assume you would have to pay those too.
Federal income tax on the dollar ammount that you won !!!!
Jay Herbert
Enthusiast
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Steve-Indy:
Federal income tax on the dollar ammount that you won !!!!
<HR></BLOCKQUOTE>
If you do some digging, you may be able to find case law that discredits this. I remember reading about such a case in an issue of Road and Track in the '93 time frame. Rich H. from IL had just won his Viper from tire America (?). I sent him a copy of the article, he may still have it.
It seems to me the person in the article still had to pay "sales tax", but it was deemed by the court that he did not have to pay income tax because the car was not "pay for labor", and thus not taxable as income? Long time ago, but I remember the case was in IL, or MO. Is their a tax lawyer on the site?
Federal income tax on the dollar ammount that you won !!!!
<HR></BLOCKQUOTE>
If you do some digging, you may be able to find case law that discredits this. I remember reading about such a case in an issue of Road and Track in the '93 time frame. Rich H. from IL had just won his Viper from tire America (?). I sent him a copy of the article, he may still have it.
It seems to me the person in the article still had to pay "sales tax", but it was deemed by the court that he did not have to pay income tax because the car was not "pay for labor", and thus not taxable as income? Long time ago, but I remember the case was in IL, or MO. Is their a tax lawyer on the site?
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Steve Segal:
What if you were to take delivery in a state where there was no sales tax?
<HR></BLOCKQUOTE>
Steve,
I don't think that would really make a difference, because it is my understanding, they will then just collect the sales tax when you go to DMV to register it in your own state. I don't know anyway of beating it.
Laura
What if you were to take delivery in a state where there was no sales tax?
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Steve,
I don't think that would really make a difference, because it is my understanding, they will then just collect the sales tax when you go to DMV to register it in your own state. I don't know anyway of beating it.
Laura
Brad04Mamba
Viper Owner
You would pay sales tax when you register it with your state DMV. Don't know about luxury or gas guzzler tax. Then you would receive a 1099 in January for the MSRP as an award. This would then have to be reported on your personal tax return. There is case law on reported a lesser amount if you want to get aggressive and say that Vipers generally sell for less than MSRP so this is what I reported.
There was a thread recently stating that you might have to pay taxes on the market value of a "1 of a kind" vehicle as high as $150,000. If you received a 1099 for more than MSRP I would definitly report less, the IRS would not have a leg to stand on since this is a 1 of a kind car, its never been sold before so a higher price could not be justified. Now if you sold the car right away for lets say $100,000 then this is what you would pay taxes on. Any other questions I could research for you just email me.
'00GTS CPA
There was a thread recently stating that you might have to pay taxes on the market value of a "1 of a kind" vehicle as high as $150,000. If you received a 1099 for more than MSRP I would definitly report less, the IRS would not have a leg to stand on since this is a 1 of a kind car, its never been sold before so a higher price could not be justified. Now if you sold the car right away for lets say $100,000 then this is what you would pay taxes on. Any other questions I could research for you just email me.
'00GTS CPA
Thank you Wayne.. 90%of what we worry about never comes to pass anyway. If it is a real burden for the winner I'll give him his $100 back and take delivery on the car so save him the grief. See how easily problems can be solved.
ViperGTS
Enthusiast
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If we would win the car as a German, we had to pay import tax and VAT - all around 25% plus! We also had to modify (for approx 8.000 to 10.000 US$) the US car to change it to EU standard (emission and noise regulations etc.) and we have to go to the TUEV (what means the Official technicians controlling ALL cars before allowed to go onto the streets). Seems to be an expensive win...
bad viper
Enthusiast
That's taking the cart before the horse!!!
Worry about it if you win!! I've found in life... why worry about anything you have NO CONTROL OVER????????????????
Worry about it if you win!! I've found in life... why worry about anything you have NO CONTROL OVER????????????????
slaughterj
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For anyone concerned about the tax implications, feel free to provide me with your winning ticket, and I will deal with those problems
Newport Viper
Enthusiast
The reason I brought it up is that we are giving a car away at work as in a sales contest! You know the one, First place car, Second place steak knives, Third place you are fired. This is as labor it could be different tax ect... What is the best way to find out?
jimandela
Enthusiast
Regarding luxury tax and gas guzzler... I flat out refused to pay tax on a tax and deducted that amount from my purchase price.
when questioned at the DMV I explained my reasoning. they after making a few phone calls gave in and did not force me to pay the extra taxes.. good advice from my dealer to fight that...
also I brought up internet sales are to be tax exempt and then they really backed down... saying that they are aware internet
sales are "state sales tax free" but no one has challenged it.
i said what ok how do i challege it? they said file a suit to force the DMV to make a policy regard internet auto sales....
they also told me if a ruling ever does come down and i can get away without tax to come back for a refund seeing that my sale was an internet purchase.
just some fyi on my tax situation...
when questioned at the DMV I explained my reasoning. they after making a few phone calls gave in and did not force me to pay the extra taxes.. good advice from my dealer to fight that...
also I brought up internet sales are to be tax exempt and then they really backed down... saying that they are aware internet
sales are "state sales tax free" but no one has challenged it.
i said what ok how do i challege it? they said file a suit to force the DMV to make a policy regard internet auto sales....
they also told me if a ruling ever does come down and i can get away without tax to come back for a refund seeing that my sale was an internet purchase.
just some fyi on my tax situation...
