If you could have bought the car for $28,000, then $28,000 is all that you
must report on tour taxes, regardless of what is reported on the 1099.
On Tue, Mar 6, 2012 at 1:42 PM, <TedChee@aol.com> wrote:
> Read the article to get context for my comments:
>
> _
> http://articles.orlandosentinel.com/2012-02-07/travel/orl-travel-perkins-02
> 0712_1_value-of-frequent-flyer-citi-inflated-value_
> (
> http://articles.orlandosentinel.com/2012-02-07/travel/orl-travel-perkins-020712_1_value-of-frequent
> -flyer-citi-inflated-value)
>
> In a nutshell, Citibank is using this technique to artificially boost its
> losses analogous to the old tax shelters where losses were created
> independent of market value.
>
> Customers bear the burden which can be alleviated by coming up with market
> valuations paired to time when benefits are received. But this is a hassle
> & it still kicks you up a notch if you're challenged on your valuation.
>
> I'll use this as a soapbox to talk about non-cash prizes which result in
> 1099s. Before going for these prizes look up the value before
> participating.
> Just in case you win, do you really want to report a $40,000 1099 for a car
> that you could have bought for $28,000?
[Non-text portions of this message have been removed]
