taxes

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beedyr

New member
I just read several comments about reporting wins and I understand what has to be done What I don't know is: If you win, say, a big screen TV that sells for $3000.00...you report it on your tax form. What happens if you sell it? Do you also pay taxes on what you sell it for,
essentially paying twice? Anybody???
 
I don't know about a tv and selling it but I do know you can end up paying taxes twice, I won a 25,000 plus boat, and I live in IL, so had to pay sales taxe of 6.9% which was quite a bit,, then at the end of the year I had to pay income tax on the value of the boat. So ended up paying taxes twice, but the sponser was so great they paid the sales tax so I would not have to pay twice,which was wonderful of them to do because it was not included in the prize, but when found out I had to pay both they did it. good luck
 
The only way you would have to pay income tax a second time would be if you happened to sell it for more than the $3000, then you would owe taxes only on the amount over the $3000.
 
Thanks for the info about taxes. Looks like I'm not going to have to worry about it as I have not won anything this month and only a few small things in June. I think I'll take my whine and go watch TV!
 
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