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Question For Car Sweepstakes Winners?
ntekos
#1 Posted : Thursday, April 19, 2018 5:49:53 AM(UTC)
ntekos

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Has anyone out there ever won a car from a sweepstakes? If so, roughly how much($) are you out for tax, title and license for a vehicle win?


I've seen many sweepstakes listed on this wonderful site that have vehicles as the grand prize but I'm always hesitant to enter knowing that if I won I would have to pony up some cash upfront to claim it.


I know it would vary due to differing ARV's for vehicle prizes and realize that some sweeps include a check to help with taxes but was wanting to know from car winners what the ARV of their car win was and how much they paid to claim it if there were no additional funds given to help offset taxes.


Any and all info would be appreciated.

jerry1335
#2 Posted : Thursday, April 19, 2018 6:13:07 AM(UTC)
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Very good question. My win had an all cash option. The check was to right make and color and nothing was withheld!!

curmudgeon2
#3 Posted : Thursday, April 19, 2018 8:57:54 AM(UTC)
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ntekos;207728 wrote:


Has anyone out there ever won a car from a sweepstakes? If so, roughly how much($) are you out for tax, title and license for a vehicle win?


 



The Federal Taxes will be based on the 1099 sent to you by the sweep & will vary based on the dollar amount of the prize.  The dollar amount is reported on line 21, other income, on your 1040's.  You could recalculate your current 1040's by adding the ARV of the car (see the rules) on line 21 for a ballpark tax figure.  The 1099 will be based on the "window sticker" price and I don't know how much sucess you'll have in convincing the IRS that it should be based on the lower price that people actually pay.  It might be a good idea to start clipping Dealer ads for the vehicle that are dated close to the time when you took delivery as support for a lower value.  You might even try to get signed sale offers in writing from a few Dealers.


The different States all have different Tax, License and Registration Fees.  You should contact the Dept. of Motor Vehicles in your State for info on those taxes and fees.  As the value of the car increases, so do the fees.


The total tax and fees on a $75,000 SUV are going to be substantially higher than the total on a $25,000 compact car, so yours won't necessarily match the fees that someone else paid.


Most of us will never win a car.  It's a popular prize and most folks will enter a car sweep, so the odds of winning are not in your favor.  I've been trying for about 20 years with no luck.  My intention is to sell the car to the delivering dealer.  If his price is half of the ARV, it should be enough to cover my taxes and fees, plus a tidy profit for me.


If you win, you can always decline the prize, so enter 'em all and hope for the best.

"Only those who will risk going too far can possibly find out how far one can go."

T. S. Eliot
bobthomas18
#4 Posted : Sunday, April 22, 2018 6:11:45 AM(UTC)
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Curmudgeon nailed it.  When I won the Range Rover, I had to pay state sales tax, license  & registration up front.  Received a 1099 the following Janruary for the value of the car.

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