Tuesday, July 19, 2005
What was second prize?
Did you hear about the guy who won twelve pairs of round trip coach tickets on American Airlines to anywhere they fly? AA valued the prize at the maximum possible amount, meaning that the taxes the winner would have to pay would have been about $19,000, or about $790 per ticket. The guy ended up declining the prize, figuring he could buy the tickets a lot cheaper.
Subscribe to:
Post Comments (Atom)
2 comments:
that's why winning a prize on a game show stinks, unless it's cash. it's because you get taxed for the value of the prize, whether it'd be a trip or a car or an appliance. especially a car - you not only get taxed but you have to foot the bill for insurance. sorry to sound like a party pooper, but it's reality.
I won a computer once on an online contest (worked and all that, it was run by the NFL), and I was all psyched til I figured out that they valued it such that I had to pay about $500-600 in taxes. Still was less than a new one though.
Post a Comment