![]() Since prize winnings are taxed as income, it benefits you if you live in a state where there is no state income tax. If the car is worth more than $5,000 – as it no doubt is – they may even require you to hand over 25 percent for federal taxes before they’ll release the vehicle to you. ![]() You’ll get a handy Form 1099 from the entity that issued the prize and, on that form, they’ll have declared a value for your prize winnings. If you win cash, this is a little easier, but claiming the value of your car isn’t too complicated. The biggest expense will be at tax time, when your winnings will be taxed as ordinary income. There will also be a title transfer fee, but this will be nominal when compared to the other costs. If you’re in a state that taxes cars, you’ll owe as much as 9 percent in sales tax. Your tax obligation starts when you pick the vehicle up. ![]() ![]() If You Win a Car, How Much Are the Taxes? Additionally, the vehicle will also come with an automobile-related sales tax. You will pay taxes on any automobile you win as income. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |