FrankBullitt05

Cuz you know, Jay is cool like that B)

Com'on, Jay

future9er24

Whoa... that could fill a small city! [/b][/quote]
or a big one

JFactor

i saw that when it was on TV...one lady was humping her car <_<

Lalo

for real?!?

EleanorsMine

NOT SO FREE:
Oprah car winners hit with hefty tax

Like any prize, the value is counted as income; winners must pay up to $7,000 or forfeit the car.
September 22, 2004: 7:05 PM EDT



NEW YORK (CNN/Money) - Leave it to Uncle Sam to spoil the party.


When Oprah Winfrey gave away 276 cars last week to the audience of her show, images of people laughing, jumping, crying -- some hysterically -- filled the airwaves and the give-away became stuff of legend. Late night talk show hosts and newspaper columnists are still talking about it.

But now some of those eager prize-winners have a choice: Fork over $7,000 or give up the car.



According to a spokeswomen for Harpo Productions Inc., Oprah's company, the recipients must pay a tax on the winnings, just like any prize.

For a brand new Pontiac G-Six, the model given away on the show, the sticker price is $28,500. The $28,500 would need to be claimed as income so, depending on the individuals tax bracket, the tax could be as high as $7,000. And that was after Pontiac agreed to pay most of the local charges, including state sales tax and licensing fees.

The Harpo Spokeswomen said winners had three choices. They could keep the car and pay the tax, sell the car and pay the tax with the profits or forfeit the car.

PonyGirl

yeah, it is very sad for those folks that won the cars and really need them, cause now they are stuck in a hard spot if they cant pay the taxes. Government really gouges you on a "prize value", it is crazy. I heard that Oprah didn't even pay for the cars, that Pontiac approached her about the give a way and of course she said yes, and Pontiac was in the lime light with good advertising.

Good luck to those folks. If one is in St. Louis, I will buy it from them! ( Sister needs a new car anyway).




Moderated Post

Maverick128

Well let's see, most of those people NEEDED a new car, Oprah wasn't really the one who gave them away(GM did), they need up to $7000 to keep the car, Oprah is worth more than a BILLION dollars (or so I hear). I've got an idea! How about, wait for it... Oprah pays for their taxes! No need to thank me. That's what I'm here for. B)

I'd prefer the Stang PonyGirl. But hey, go ahead and go for it. That just means there will be one more available Mustang here in St. Louie.

Dr Iven

Ay, but there's the rub...

If Oprah pays for their tax, what's to keep the IRS from saying that THAT is income, as well?

I'd just sell the freakin' thing, keep about $20,000, and buy a 2005 Mustang V6.

Greywolf

You can give 11,000 per year in cash to a person as a gift and they will not have to pay taxes on it. You just have to file the appropriate forms with the IRS.

NO2MORO

In the Birmingham Alabama news paper today, a local man and his wife both recieved a free car. They now owe 14,000.00 in taxes and the goverment wants them to pay up.


So much for free cars.

Lalo

wow, thats horrible. here in L.A. theyve been talking about the "not really a gift" gift. it stinks that they have to pay taxes.

Galaxie

Instead of saying free, she should have said "heavily discounted"

I wouldn't mind paying just taxes on a 2005 Mustang GT

if it was anything else, sell it for the difference

Dr Iven

I bet Ken from Jeopardy knows about the IRS's chunk all too well now.

And I've always said that the best games on The Price is Right are the ones where you win cash, because then you can just take out the tax amount straight from your winnings.

Lalo

yea, money is the best way to go.

today on the news they were interviewing the people from that show where they break your house down, and then make you a new one. they said that the company pays for the "gift" taxes by paying rent for it, and although the property tax goes up higher, the owners dont mind. and they said that when it comes to cars they have given out, they payed for the taxes, not the winners.
i want my house knocked down

Galaxie

Plinko is the greatest game ever!!!

Dr Iven

YES! It is definitely the coolest game of all, but I hate to watch the morons that play it not even get all the chips, let alone not even get the money. :notnice: