[dcsipe]

You don't have to pay taxes on gifts, unless stylez23 reports his gift to his father to the IRS. Then his dad would have to pay taxes.

Have you ever paid taxes on presents you received for Christmas or your birthday? Same concept.

[mrgarza]

Still waiting for some kind of notification. Should we start an official "I won" thread?

[dstrauss]

You don't have to pay taxes on gifts, unless stylez23 reports his gift to his father to the IRS. Then his dad would have to pay taxes.

Have you ever paid taxes on presents you received for Christmas or your birthday? Same concept.

Close. All gifts totalling less than $11,000 per year by one person to any other individual are excluded from the gift tax. No gift tax is due for the gift(s), unless married couples are splitting gifts (another whole topic). The prize winner will owe income tax on the winnings (regardless of value), and if it's market value is $600 or more, PalmOne must report the winnings to the IRS and winner. However, some companies report all such winnings (beyond nominal gifts).

Welcome to America and our chosen means of financing our fine government.

[Ree Nigne]

Gifts are taxable income just like a paycheck. For the winners, if P1 asks for your taxpayer ID (which is your SS # for individuals) when you claim your prize, then they likely intend to report the gift to the IRS. If they don't ask for your social, they almost certainly do not intend to report it (there is probably a threshold below which contest holders do not have to report). Whether you declare the income is between you and your God (well, okay, between you and The Man, anyway).

[hofo_mofo]

Darkflame again a lot of people from that oprah episode couldn't afford the tax on their car so they had to find a way to dump it. heheh

I'm egar to see what will happen should you guys win something.

if I had my choice I would want to win a coupon as some of you have eXpressed already

[jetkins]

I would think that if you won a car and can't afford the taxes, you should be able to take out a secured loan using a lien on the title as collateral, just as if you were buying a new vehicle from a dealership.

[Christinac130]

This thread is getting depressing. I almost don't want to win anymore...:-(

[njchris]

This thread is getting depressing. I almost don't want to win anymore...:-(

Now you will win 10 treos and have to pay tax. hehe

[dcsipe]

Close. All gifts totalling less than $11,000 per year by one person to any other individual are excluded from the gift tax. No gift tax is due for the gift(s), unless married couples are splitting gifts (another whole topic). The prize winner will owe income tax on the winnings (regardless of value), and if it's market value is $600 or more, PalmOne must report the winnings to the IRS and winner. However, some companies report all such winnings (beyond nominal gifts).

Welcome to America and our chosen means of financing our fine government.

Who's talking about $11,000 gifts? I was answering the guys question about his dad having to pay taxes on the TREO that the son won.

[alokeprasad]

Now you will win 10 treos and have to pay tax. hehe

Does that work?

I don't want to win any as well .....

[Christinac130]

No, you can only win ONE prize

njchris...could you say that about the $168m Mega Millions ticket I bought instead? From your keyboard to God's ears...

[dstrauss]

Who's talking about $11,000 gifts? I was answering the guys question about his dad having to pay taxes on the TREO that the son won.

1. I was addressing the general question of gift vs income tax

2. Even if he reported the gift to his father: (a) there is no tax because it's below the $11,000, and (b) any event, the GIVER is liable for the tax on gifts, not the recipient (unless they agree otherwise)

[reverendrhino]

Sounds like you all can't wait to be taxed. If you don't, i'll tax you all at a lower rate & then i'll go buy another 650 with it.

[mrgarza]

Yes, we are all very worried about the tax, now can we please stop posting about it. Every time I see a new post here I check it for new info and its just another post about tax. It's not like it's going to be that much.

[handtruck]

If I win a free phone, forget it.. It's not worth paying the thousands of dollars in taxes for it... I calculated that I would LOSE money by winning one of them.

[jetkins]

How the hell can you lose money on it? If you keep it, you pay the tax on MSRP, so you got a $600 phone for under $200 (and effectively made >$400). If you sell it, you pay the tax on the fair market price you sold it for, e.g. you pocket something in excess of $300 if you sell it for $450.

Perhaps you were using the % key on the Treo's calculator.

[RicoM]

i entered 3 times, 3 different email addreses.

re: the type the word thing to show you are a real person. A lot of websites are using this, but has anyone else run into a word they couldnt make out? "is that an "a"".

I entered like 15 times and once I mistook a "o" for a "c", you get an immediate error. I looked closer and put the correct letter in.

[jerzydiver]

If I win a free phone, forget it.. It's not worth paying the thousands of dollars in taxes for it... I calculated that I would LOSE money by winning one of them.

I think you used a faulty calculator taxes are in no way thousands.

[RicoM]

How the hell can you lose money on it? If you keep it, you pay the tax on MSRP, so you got a $600 phone for under $200 (and effectively made >$400). If you sell it, you pay the tax on the fair market price you sold it for, e.g. you pocket something in excess of $300 if you sell it for $450.

Perhaps you were using the % key on the Treo's calculator.

Um....I believe he was being sarcastic

[alokeprasad]

I predict that no one who frequents these groups will win anything (in this giveaway).

Aloke
---
perpetual pessimist: No disappointments