So,you win a $35,000.00 car, and if you’re in a 28% federal bracket and say, a 5% state income tax bracket, you get to pay those authorities more than $10,500.00, to say nothing of your insurance!
But then, I own a Mustang Cobra with 430 HP, so don’t pay any attention to me. A pony car beats a Prius any day!
Don’t they still have the tax deal where if you have an unusual windfall or something one year, you can average your income for a period of years to spread it out?
Suffice to say the winner gets a fine car and a 1099 for $34,999.
Fun car, though.
You think that is bad, there are rodeo events where they give away fully loaded 3/4 ton pickups...yikes!! $40,000- $50,000 value now. A local man won one and had to take out a loan to pay for taxes, title, etc. and that was a few years back. I also knew a lady that won a little economy car at a casino, she upgraded it with the dealer to a luxury model, then with the tax issues she was actually having a hard time getting everything paid. She just didn’t understand how it all worked until she was in a mess.