Glen,
This happened to me in 2009 at the Peppermill where I won a Mercedes E-350
in a drawing. The window sticker was $62K. My CPA instructed me to
immediately go to a car club on-line (like Costco) and request a quote for the
identical new car model from a local dealer. I was able to use the lowest
written quote to reduce the basis for the income tax by about $5K.
Walter H in Florida
In a message dated 3/6/2012 4:42:18 P.M. Eastern Standard Time,
TedChee@aol.com writes:
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?
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