How much will a free trip cost me?
May 21, 2008 12:26 PM Subscribe
I won a trip in a drawing. I have questions about the tax implications of accepting the prize.
posted by amarynth to Work & Money (14 answers total)
I have a contract that states:
4. I am seeking to be declared the official winner of the following prize (the “Prize”) in the Promotion: “A trip for two persons to (Event) on (dates) in (Location). Trip includes (i) roundtrip airfare for two (2) people to (Location) from the major United States gateway airport nearest your (winner’s) home, (ii) two (2) nights double occupancy hotel accommodations and (iii) two (2) two-day general admission tickets to (Event) on (dates), including two (2) free parking passes and food provided by (venue). Hotel, airline, airport and food to be designated by (venue). Estimated retail value up to $1,700 depending on winner’s point of departure.” I understand that (venue) reserves the right to substitute the Prize (or any portion thereof) with one of comparable or greater value, at its sole discretion.
No other dollar amount or prizes are mentioned anywhere in the contract, however someone from the company said that they're saying the ARV of the prize is $40,000, but that includes "VIP stuff and things that are not really taxable." She couldn't tell me anything about what the approximate taxes I might have to pay are.
Does anyone have any ideas, or know how I could find out by COB tomorrow?