Quote:
Originally Posted by Cunnos
Yea they sell one car a year to the charity.....all the details are listed on the site. They prolly get a nice tax break doing this type of stuff......i hope i win this.....everyone says I should sell the car if I win.....someone at my work said I would have to pay a huge tax on this car if I won it??? Not the excise tax but the actual tax for winning the car, does anyone know anything about this???
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Yes, the Federal Tax law states that the prize is to be considered income, so it gets listed on your 1040 return. For big prizes (usually cash prizes) they withhold 25% on your behalf and make that payment to the IRS for you. For an expensive car like this it would cost you $20K to keep it, and another $5K to register it in MA. So your "free" car ends up costing you almost as much as a new Z. Still beats paying $80K.