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> Do you really have to declare and pay tax on competition winnings in the US? Yes, and it's why I would always cringe whenever I saw The Price Is Right with s
by nkozyra 11y ago
> Do you really have to declare and pay tax on competition winnings in the US?
Yes, and it's why I would always cringe whenever I saw The Price Is Right with someone winning $50,000+ of stuff they didn't need (or often even want).
- mod 11y agoBut...you just sell the stuff you don't need/want at a nice profit.
- objclxt 11y agoNo, you don't. Often the sticker value that's declared is much higher than the actual value of the goods. There's a good explanation from a winner of The Price is Right here, where she paid taxes on a prize valued at $14,000 but was only able to sell it for $4,500: http://www.avclub.com/article/what-happens-when-you-win-ithe-price-is-righti-101445 http://www.avclub.com/article/what-happens-when-you-win-ithe...
- randomaccount23 11y agoYou can dispute the sponsor's approximate retail value (ARV) and only pay taxes on the fair market value (FMV). See here: http://contests.about.com/od/taxesfinances/ht/FMVvsARV.htm http://contests.about.com/od/taxesfinances/ht/FMVvsARV.htm