Quote:
Originally Posted by ocolgan
I do have to file a 1090 on 40000.00 in 09. I can sell it, if I want to for more than the 6000.00 dollars in taxes.
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Don't know if this has been addressed or not; however, you don't file anything. You'll have to complete a W-9 form for the contest sponsor (might be in your eligibility packet) so they can complete a Form 1099 and submit it to the IRS reporting the winnings. If you take delivery in Jan 2010, it will be a taxable event for you in 2010 and you'll have until 4/15/2011 to pay the taxes due at your effective rate on that tax return. Also, remember that you're responsible for all state sales taxes, license/registration fees, XM subscriptions, etc. at the time of delivery. Given that you'll be well "in the money" on the value to any loan, you can probably get a GMAC financing package to cover the income and all other taxes/costs and have a pretty low payment.
All this said, this does not constitute tax advise. You should consult your own tax professional to determine your actual impact/exposure.