Thursday, August 9, 2012

Big Taxes On TV Game Show Prizes

" gives the example of a 'Price is Right' winner (name withheld) whose haul included a new truck, a washer and dryer, an Apple computer, a poker table and a trip to Washington, D.C... 'I won $57,000-worth of items. I had to pay around $17,000 or $20,000 in taxes.'
Some winners, he said, decline to take their prizes because they don’t want to pay the taxes."

"Another catch: You’re paying taxes on the item’s full retail value – in the case of a car, say, on the manufacturer’s suggested retail price, rather than on the discounted price a buyer on the open market might pay. Win a really big prize, and the income might be enough to lift you into a higher tax bracket, further increasing the cost of your good fortune."

You can read more from ABC News HERE

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