fmv question

[kristoefer]

I like to be ahead of the game. So, I been studying up on what exactly has to happen on bigger prizes as far as taxes go. In the unlikely hood I actually win one. Just rather be prepared then in the dark if it ever happens.

My question is what constitutes as proof of the fmv if the value differs from the value on the 1099 at the time of possession ?

 

[chaotic]

from the IRS website:

http://www.irs.gov/publications/p561/ar02.html#d0e121

http://www.irs.gov/publications/p561/ar02.html#d0e139

I usually just look online for whatever it is that I've won and print that out.
For trips, Ialways check the hotel website for rates and the airline website for rates for the specific dates that I am to travel. Print those and if other stuff is included, try to find documentation for that stuff as well.

So far, never a problem for me and I've done 8 trips this way, and numerous big ticket items, as well.

I do, however, always try to convince the sponsor/ja to correct a 1099 if it shows a different amount than what I have documented. Usually, when confronted with the actual cost, they have been quick to send a corrected 1099. If not, I use the FMV based on my documentation and have not had any problems in doing so.

 

[kristoefer]

Thank you :cheers:, I kind of figured a print out would work but wasn't sure.

There is some fun reading there, IRS.gov , lol