Reply by Ron Aylor

  • Advertise with us

Posted on Chance to win $11,000 shop from Popular Woodworking

View Ron Aylor's profile

Ron Aylor

2649 posts in 1499 days

#1 posted 05-08-2018 06:10 PM

I would enter, but if I won I wouldn t know what to do with all of those power tools … LOL!

- Ron Aylor

You can add 11,000 dollars to your income and pay more taxes.

The downside of winning a high-priced item, like a car, is that you may have to sell it to pay the taxes or dip into savings intended for other purposes. You will have to pay tax on the fair market value of the item, so if you won a $50,000 car, you ll owe taxes on that amount. The company providing the winning item should send you a Form 1099 with its fair market value. Again, the prize may move you into a higher tax bracket, so make the same computations as if it were cash. For example, if you are in the 28 percent tax bracket with the car included, a bracket that currently ranges from $91,900 to $191,650, you’d pay $18,713.75 plus 28 percent of the excess over $91,900 for tax year 2017.

- AlaskaGuy

Then it’s a good thing I didn’t enter … LOL!

DISCLAIMER: Any posts on LJ are posted by individuals acting in their own right and do not necessarily reflect the views of LJ. LJ will not be held liable for the actions of any user.

Latest Projects | Latest Blog Entries | Latest Forum Topics