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1 Million SP Winner - video

DavidnRobin said:
retail value of $35,000 - I hope your tax bracket is low...
Click to expand...

So, how does that work?

Do you have to come up with some $$'s to get the prize, or does that retail value just get added to your income taxes when you next file?
 
YYJMSP said:
So, how does that work?

Do you have to come up with some $$'s to get the prize, or does that retail value just get added to your income taxes when you next file?
Click to expand...

You will get a 1099x (x = form # I can't remember) for prize winnings of $35000. I believe required for winnings over $600 - or something like that - the laws may have changed since it happened to me (not a CPA...), and you will need to file both Fed and State.
btw, it is not a W2G - because that is for gambling. At least with a W2G - you can write-off your gambing 'losses' against your wins. ;)

I would have to consult a tax CPA to determine if it was worth accepting the prize as it could cost as much as ~40% in Calif. I (meaning DnR - not necessarily anyone else...) would probably only want it to cost < 1.3 cents/SP since travelling also costs even if the hotel and air were 'free'.

nodge - no teasing SC (but not a great angle) - she is a nice person and I think they were trying to be homey... :D
I thought it looked like WKORV...
 
DavidnRobin said:
nodge - no teasing SC (but not a great angle) - she is a nice person and I think they were trying to be homey... :D
I thought it looked like WKORV...
Click to expand...

WKORV would need to grow about 10 stories taller for that to be it.

I'm not teasing SC, I'm teasing her production crew. Maybe SVO hired a recent graduate from the Ed Wood school of film making?

-nodge

Hey wait . . . maybe the pictures were MEANT to show things Joan CAN'T buy with her StarPoints she "won" by having to pay $10,000 or so in taxes.

Waverunner rental? nope
Hyatt Regency stay? nope
Giant flower bouquet? nope

Sort of like saying, "hey, you don't need to do that stuff now that you've got all these StarPoints to burn . . . .."
 
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DavidnRobin said:
You will get a 1099x (x = form # I can't remember) for prize winnings of $35000. I believe required for winnings over $600 - or something like that - the laws may have changed since it happened to me (not a CPA...), and you will need to file both Fed and State.
btw, it is not a W2G - because that is for gambling. At least with a W2G - you can write-off your gambing 'losses' against your wins. ;)
Click to expand...

So in the USA if you win anything over $600 you end up paying taxes on it as if it was income at the end of the year? And they set the value as the "full retail" price (which is probably overinflated vs. what you'd really pay for the prize)? Ick.

DavidnRobin said:
I would have to consult a tax CPA to determine if it was worth accepting the prize as it could cost as much as ~40% in Calif. I (meaning DnR - not necessarily anyone else...) would probably only want it to cost < 1.3 cents/SP since travelling also costs even if the hotel and air were 'free'.
Click to expand...

So if someone won a $1 million lottery, they could end up paying $400K in taxes depending on where they lived? I guess you'd still be $600K ahead in cash, but if you won a prize (like this case), you would essentially be out-of-pocket?

I assume you can decline to take the prize?

I wonder if this was open to non-USA residents? How would they enforce collecting the taxes on a foreigner?

Definitely nicer here in Canada, as prizes/lotteries/etc are all tax-free, as long as the ticket was purchased with after-tax dollars.
 
The price that was set is 3.5 cents per SP - what Starwood 'sells' them for...
I am not a tax CPA - please take my comments as such. I have both won prizes, and had gambling winnings (from WSOP) - so this was my experience.

prizes and gambling winnings are taxable - you can decline prize - as was reported here once before
 
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