1099-misc for the NHC

[OTM Al]

Originally Posted by pointman

I understand where you are coming from, and I could be wrong, but my instinct tells me that it has nothing to do with Monmouth and everything to do with the IRS.

The IRS definition of income is all money, goods, property and services you receive from any source derived. In basic terms, anything you receive is taxable unless the tax code specifically exempts it. If you go on The Price is Right and you win a car, you have to report the value of the car as income and pay taxes on the value. It is why Richard Hatch, the first winner of Survivor, went to jail for failing to report his winnings.

Again, I am not an expert in the area. But I do know that anything you receive is income unless the tax code specifically says it is exempt or deductible. I am sure there is a CPA around here who knows better, but my instinct says that winning a trip to the NHC is something that you need to discuss with your accountant as there may be tax consequences.

The seat cannot be taxable. You cannot buy in, so it has no monetary value. The $3k is the prize money contribution by the satellite contest. If that is taxed, then all taxes have already been paid on all the prize money, so no one cashing at the NHC should have to pay taxes. Does that sound remotely right to anyone? Big no right there.

[pointman]

Originally Posted by OTM Al

The seat cannot be taxable. You cannot buy in, so it has no monetary value. The $3k is the prize money contribution by the satellite contest. If that is taxed, then all taxes have already been paid on all the prize money, so no one cashing at the NHC should have to pay taxes. Does that sound remotely right to anyone? Big no right there.

Like I said, I would check with a CPA. But you might be surprised by what the IRS considers taxable.

It starts with everything you receive.

[Scav]

Originally Posted by OTM Al

The seat cannot be taxable. You cannot buy in, so it has no monetary value. The $3k is the prize money contribution by the satellite contest. If that is taxed, then all taxes have already been paid on all the prize money, so no one cashing at the NHC should have to pay taxes. Does that sound remotely right to anyone? Big no right there.

the loophole. Possibly well done

[Indian Charlie]

Fair and right ain't got nothin to do with it.

[pweizer]

Originally Posted by OTM Al

The seat cannot be taxable. You cannot buy in, so it has no monetary value. The $3k is the prize money contribution by the satellite contest. If that is taxed, then all taxes have already been paid on all the prize money, so no one cashing at the NHC should have to pay taxes. Does that sound remotely right to anyone? Big no right there.

This is my understanding as well. I can't buy a seat. I can't sell a seat. It has no monetary value. It is simply an entry into a "free" contest. The seat itself is only an entry into a contest. There are lots of contests out there with no entry fee and none are taxable to enter.

Obviously, if you cash at the NHC, it is a different story...

Paul

[asudevil]

My only hope is that I have similar challenges to the confusing tax code after tonight's powerball drawing.

[bare it all]

Originally Posted by asudevil

My only hope is that I have similar challenges to the confusing tax code after tonight's powerball drawing.