I'm declining the Grand prize!

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dinger

dinger

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I have just reported a win in the hall of fame wins! I won the grand prize of a trip for 4 to L.A. for 3 nights , R/T air, hotel and $500.00 spending money.

I have researched this and this trip is worth about $4,000 at most. The promotion from the Toyota Sweepstakes Highlander Challenge stated that the ARV is $10,000. There is no way I'm going to pay taxes on $10,000 for a trip not even worth half that.

It states in the affy: I understand that upon reciept of my prize I will recieve a 1099 at the end of the calendar year weather I decide to use my prize or not. I confirm that my 1099 will reflect the ARV of my prize, $10,000.00 I will contact my tax advisor on how to best address this issue.

They do NOT offer money in leiu of prize nor any difference in actual retail value. In addition you MUST take the trip on Feb. 22nd - 25th and can not extend your stay (even on your dime). They include NOTHING to do or see while out in L.A.

I just don't see what they are going by to say that it's worth $10,000. Anyway, someone may be contacted as an alternate winner from SA! Good luck
 
I know that people have reported keeping up with the actual retail value of their prize and only having to pay taxes on it. I haven't actually won a big prize, so you would have to talk to someone else, but if you haven't declined it yet and are the least bit interested it might be an option for you.

Good luck one way or the other.
 
Don't feel bad, I declined one last year for a trip. I know you can show the true ARV for tax purposes, but it's a pain in the butt having to research everything. What a shame the sponsors areen't willing to work with you on it. I won a trip with Best Buy 2 years ago, and they accomodated everything I wanted. I couldn't have asked for a better trip. I'm sorry you have to turn it down.
 
Sorry you have decided to give up the Grand Prize.... Well this won't be your last Good Win girl..... Good luck on your future entriesssssss
 
We've won quite a few trips, all of which cost less than half of the ARV. You are only required to pay taxes on the true value.

Never expect anymore than what is stated in the rules and never assume anything.

In the case a sponsor does not change the ARV to it's true value (never had that happen yet), you must have documentation of the exact flight/seat costs, hotel (exact nights), etc., to prove fair market value (FMV).

You "DO NOT/NEVER" pay taxes on something that had not been paid for yet. You would only pay taxes on what you accepted and then paid for by the sponsor as part of the prize.

Also, keep in mind, some sponsors will not award the prize to an alternate if the prize is forfeited/turned down.
 
I cant blame you at all. When you get a 1099 for say $10,000 so does the IRS, even if you have all the documentation that says the prize was worth less. I claim the $10,000 because if you dont you could be setting yourself up for a tax audit! There is no way I want anything to do with that, I mean really who wants to deal with the IRS - not me baby. So I dont enter for so many things like trips and such because of the high value they usually claim.
 
tigercheryl said:
I cant blame you at all. When you get a 1099 for say $10,000 so does the IRS, even if you have all the documentation that says the prize was worth less. I claim the $10,000 because if you dont you could be setting yourself up for a tax audit! There is no way I want anything to do with that, I mean really who wants to deal with the IRS - not me baby. So I dont enter for so many things like trips and such because of the high value they usually claim.
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Actually, the IRS addresses this issue. They state that first you can request the sponsor change the value to the correct value. We did this on a trip prize once. If the sponsor refuses to change it, you can, at your option, fill out a form the IRS has to have them force the sponsor to change the value. Either way, backup documentation is proof enough for the IRS. We have never reported the full value on 1099's that were not readjusted. That would be like paying taxes on income you never got. :nono: :)
 
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