Quote:
Originally Posted by ocolgan
I received a message today from a gentleman who asked me if I wanted to sell the Bumblebee because he is buying the new camaro and have it painted like Bumblebee and this would save him having to do that.
What do you guys think this car is actually going to be worth?
I am not selling just wondering.
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This is actually a good question because what you pay in taxes on the prize is based on Fair Market Value, not Approximate Retail Value. You should receive a 1099-MISC form from the company that ran the promotion. It will likely be for the $40,000 ARV that was initially listed in the sweepstakes rules. You will need to claim that $40k as additional income so if you made $50k from your regular job, you'd have to pay taxes on $90k. But, if you (or your creative CPA) can show that the Fair Market Value of the prize is actually less, you will be able to claim that amount instead of the amount on the 1099-MISC form. Consult your local CPA...