Game Show Winnings, how much can you actually keep?
October 10, 2007 8:04 AM Subscribe
How much of the winnings does a game show winner actually walk away with?
posted by birdlips to work & money (19 answers total) 6 users marked this as a favorite
I have always wondered just how much of the winnings a person will actually walk away with. To elaborate, if a person were to win a million dollars on an American game show how much of the million could that person put in their wallet? If the winnings are something like a car or boat does the winner have to pay taxes on the retail value?
Are there ways to increase the net amount by decreasing the amount the government takes? Assuming of course that the government treats the winnings as earnings and will tax it.
For example, Could the winner donate enough to offset the taxes therefore increasing the net amount? Could the winner set up a company in which the winner is an employee of and the winnings are revenue for the company? Then the company can give “withdrawals” to the employee.
Are there any other ways to increase the net amount or are winnings considered tax-exempt?
I assume it is different in Canada then the USA, if someone could comment on the differences that would be a bonus.