Can you pay taxes on less than MSRP?

S

solafide

New member
I won an UGLY watch MSRP at 6K. I have looked on Ebay, and even there there are no takers at prices of 3-4 K. So obviously the true value of the watch is much lower. Any suggestions for paying less taxes on it than the 6K that will show in the 1099? TIA!!
 
Re: Can you pay taes on less than MSRP?

find a store or company that sells the watch and see if you can get a quote from them on a watch like yours.The answer to your question is a big yes!
 
Would it help if I sold/traded the watch to a dealer? There are no stores in my state which carry this brand, even used, to get a quote or appraisal from.
Also, do I challenge the inevitable 1099, or just provide documentation to the IRS when they audit?
I'm just worried about owing 2K in taxes on a useless piece of metal.
 
I would search online the company that makes the watches for the true value and document it by coping the ad from the site and use that as the fair market value.
 
Several years ago I won something that's value wasn't close to the MSRP. I went online to reputable companies and printed off the selling price for the item. My tax prepared was able to use this amount rather than the over-inflated one from the sponsor. Hope this helps and good luck!
 
If you filled out a tax form and they submitted information to the IRS I believe you couuld get in trouble if you were audited. It's risky to not pay on the full amount unless a reputable tax advisor tells you otherwise.
 
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