gflande1 Posted September 23, 2004 Share Posted September 23, 2004 Winners of Oprah car give-away must pay up to $7,000 tax Sucks for them . I think I would sell, or trade in on a different car. Link to comment Share on other sites More sharing options...
Fezmid Posted September 23, 2004 Share Posted September 23, 2004 That was common on Wheel of Fortune as well. One of my boss' friends won a bunch of prizes on the show, but couldn't afford the tax. He ended up selling almost everything he won. I think that's why they started going with cash prizes instead of buying stuff in the "Showrooms" like before. CW Link to comment Share on other sites More sharing options...
BuffalOhio Posted September 23, 2004 Share Posted September 23, 2004 Winners of Oprah car give-away must pay up to $7,000 tax Sucks for them. I think I would sell, or trade in on a different car. 42732[/snapback] Too bad if it sucks for them. Even if they've had to pay $7K for taxes, that means they just got a $22K, brand-new vehicle for $7K. That's a great deal in anywhere! Link to comment Share on other sites More sharing options...
Fake-Fat Sunny Posted September 23, 2004 Share Posted September 23, 2004 Winners of Oprah car give-away must pay up to $7,000 tax Sucks for them. I think I would sell, or trade in on a different car. 42732[/snapback] I don't think it suckls for them at all. They are getting a gift with a cash value of $21,000 after taxes for applying for a ticket to be entertained. If they can't afford to take this gift in the form of a car and pay $7,000 (with various tax breaks ranging from the total amount for the rich to amounts in earned-income tax crednear the $3100 which lower level earners would owe for the car its really a red-herring to claim that somehow folks are going to be penalized economically for receiving this gift. I think the numbers reflected in this news story are simply bad reporting which gives some stas but less of the truth. Link to comment Share on other sites More sharing options...
KRC Posted September 23, 2004 Share Posted September 23, 2004 Winners of Oprah car give-away must pay up to $7,000 tax Sucks for them. I think I would sell, or trade in on a different car. 42732[/snapback] ...and this is shocking how? Of course they will need to pay taxes on this stuff. It is just like any other prize, regardless of whether it it lottery winnings, cars, winnings from gambling, etc. If you trade in the car on something else, you will still have to pay the taxes on the original prize. Now, if Oprah were as magnanimous as she is portraying herself to be, then she would pick up the taxes. Yeah, right...like that will happen. I am still trying to figure out why this is a news story. Seems like common sense to me. Link to comment Share on other sites More sharing options...
Guest Guest Posted September 23, 2004 Share Posted September 23, 2004 This was suppose to be a great give-a-way to people in need of a car. Well somebody dropped the ball big time. If these people had an extra 7,000 to pay these taxes then they most likely would have had enough money to have a decent car in the first place. Like I said in the original thread, It probably wasn't Oprah's idea but she gets the glory in the form of media coverage. Well lets see how much media coverage( read negative news items) that Oprah will recieve from this one. Granted they can sell the car and get a hefty net profit but I believe they would have to pay the tax upon receiving the car first, then sell it to someone after that. Link to comment Share on other sites More sharing options...
BuffalOhio Posted September 23, 2004 Share Posted September 23, 2004 So they don't have to pay the taxes until next tax season. Here's what they should do; Refinance the car with their local bank, and use that money to pay the taxes. The payment on $7000 would be about $160 per month for 4 years on a $28000 car. Again, it's a great deal. I hope they're not whining about this, because the last time I bought a brand new car for $7000 was in 1984. Link to comment Share on other sites More sharing options...
JinVA Posted September 23, 2004 Share Posted September 23, 2004 This is an absolute outrage! The goverment should step in immediately and pony up the $7,000 for these poor victims. Link to comment Share on other sites More sharing options...
Justice Posted September 23, 2004 Share Posted September 23, 2004 where's the beef? Link to comment Share on other sites More sharing options...
USMCBillsFan Posted September 23, 2004 Share Posted September 23, 2004 I wonder what happened because when the story first broke I saw it on the news and it was reported there that the car company was going to pay not only for the taxes for the cars but also to customize them for each person. And before anybody says anything NO it wasn't CBS!! Link to comment Share on other sites More sharing options...
stevestojan Posted September 23, 2004 Share Posted September 23, 2004 The point made by guest is a valid one. Sure, getting a $28000 car for $7000 is a steal to US, but the people in this audience were there because they were in dire need of a new car. Someone took the time to write to the Oprah show because these people were unable to go out and get themselves a car they needed. Thus, the giveaway. Like guest said, if these people had $7000 laying around, they would obviously have a car. Hell, i think you can get a new Kia of some sort for $9,999 or LESS. If they had $7000, they could make a huge down payment on that car and have payments of like $40 a month. Giving the cars away was great, but giving someone who is already accepting charity a bill for $7,000 hardly seems convenient. And to those who say they should just sell the car? Well, then the show should have just given them $28,000 in cash. They pay the $7000 in taxes, and then can go buy a NICE used car for like $12,000 and pay the tax. my $.02 Link to comment Share on other sites More sharing options...
USMCBillsFan Posted September 23, 2004 Share Posted September 23, 2004 What you are all missing is that it all depends on what tax bracket this puts them into. $7000 is the extreme. Most will probably not have to pay nearly that much. I'd take it in a heartbeat. Link to comment Share on other sites More sharing options...
VABills Posted September 23, 2004 Share Posted September 23, 2004 So because Oprah convinced Pontiac to give these people a car, the government should just forgive the taxes. Yeah okay. Well jeez why don't they forgive my taxes for the year too, since I could use the money as well. Of course you want the government to forgive the taxes, but want them to pay for your healthcare, your unemployment, Social Security when you retire, roads, military, security, etc... And they can do all this without collecting taxes. Link to comment Share on other sites More sharing options...
stevestojan Posted September 23, 2004 Share Posted September 23, 2004 What you are all missing is that it all depends on what tax bracket this puts them into. $7000 is the extreme. Most will probably not have to pay nearly that much. I'd take it in a heartbeat. 42797[/snapback] What you are missing is actually in your last post. You say "I would take that in a heartbeat" YOU would. So would I. So would everyone here. But we can afford to get our own car. These people couldnt; obviously. So the show should pick up the tax. After all, isnt Oprah worth Billions anyway? what would $1.9 Million be? (That's the most, $7000 x 276 people). Link to comment Share on other sites More sharing options...
Just Jack Posted September 23, 2004 Share Posted September 23, 2004 I wonder what happened because when the story first broke I saw it on the news and it was reported there that the car company was going to pay not only for the taxes for the cars but also to customize them for each person. And before anybody says anything NO it wasn't CBS!! 42786[/snapback] I heard that same story also. Link to comment Share on other sites More sharing options...
USMCBillsFan Posted September 23, 2004 Share Posted September 23, 2004 What you are missing is actually in your last post. You say "I would take that in a heartbeat" YOU would. So would I. So would everyone here. But we can afford to get our own car. These people couldnt; obviously. So the show should pick up the tax. After all, isnt Oprah worth Billions anyway? what would $1.9 Million be? (That's the most, $7000 x 276 people). 42815[/snapback] I see your point Steve but did Oprah pay to fly all these people to the show, put them up in a hotel and provide them with food? I hardly think so. I'm sure these people aren't living in poverty. If they can't afford to take out a loan for a few thousand dollars to pay for a FREE car then ultimately they probably won't be able to afford gas, insurance or anything else that comes along with owning a car. I see both sides of this but don't think it's UNFAIR for the government to expect to receive taxes. Like I posted earlier, I thought Pontiac was picking up all the taxes. Link to comment Share on other sites More sharing options...
Fake-Fat Sunny Posted September 23, 2004 Share Posted September 23, 2004 So they don't have to pay the taxes until next tax season. Here's what they should do; Refinance the car with their local bank, and use that money to pay the taxes. The payment on $7000 would be about $160 per month for 4 years on a $28000 car. Again, it's a great deal. I hope they're not whining about this, because the last time I bought a brand new car for $7000 was in 1984. 42764[/snapback] Actually consideration of real dollar amounts that you do shows how this article presents stats which may be true (meaning its possible) but does not tell the truth about this situation. The tax bite which is owed for this gift varies depending upon the taxes of the individual receiving the gift. The only way a person might owe $7,000 in taxes for this car is if they are in the highest tax bracket (translated this means they make a lot of money) so that this gift is taxed at the highest rate. For folks taxed at the highest rate (28% I believe but I ain't no accountant), this tax bite is probably not a huge worry as they likely can oset it with losses accrued in other holdings. The people one would be most concerned about in this case are lower-income people and thus in our progressive tax structure, their income is taxed at the lowest rate (15% I believe). Thus, someone conceivably could owe $7000 for receiving this $28,000 gift, but if they are in the lowest tax bracket they would in fact owe $4200 so the monthly payment you describe would in fact be lower. Much depends also on the nature of the gift. Many game shows for example, find it a royal hassle to give away the actual item offered on the show or in a brochure because it would mean they would have to buy and ship that item. The yactually offer winners the ability to receive the cash equivalent of the item up front. This both saves them from having to go out and buy and ship a bunch of toasters or cars and the recipient from advertising, selling, and shipping it. In Oprah's case, it seems as though she gave away keys and the actual cars so they could get a great video shoot. This may be the case as well because the car dealer actually can pay the wholesale costs for these cars and then deduct the retail value for the giveaway. However, the details of the declared value makes a substantial difference (as much as 50% mark-up on some items). In addition, there is a $10,000 gift tax deduction which allows the recipient not to pay any taxes on a $10,000 gift. usually this is used to transfer assets from one family member to another. I do not know how it applies or if it can be applied to this gift, but perhaps there may be some way for the recipient of the cars to escape these taxes as well. The baseline is that this rip-off ain't no rip-off. Link to comment Share on other sites More sharing options...
ExiledInIllinois Posted September 23, 2004 Share Posted September 23, 2004 So because Oprah convinced Pontiac to give these people a car, the government should just forgive the taxes. Yeah okay. Well jeez why don't they forgive my taxes for the year too, since I could use the money as well. Of course you want the government to forgive the taxes, but want them to pay for your healthcare, your unemployment, Social Security when you retire, roads, military, security, etc... And they can do all this without collecting taxes. 42808[/snapback] No. No. No. I agree with KRC. Oprah should pick up the bill. If she is really cool she would do this "random act of kindness." The tax bill is a big chunk of change for the poorer driver to pick up. Basically the 28k car is probably out of their means. Link to comment Share on other sites More sharing options...
KD in CA Posted September 23, 2004 Share Posted September 23, 2004 ...and this is shocking how? Of course they will need to pay taxes on this stuff. It is just like any other prize, regardless of whether it it lottery winnings, cars, winnings from gambling, etc. If you trade in the car on something else, you will still have to pay the taxes on the original prize. Now, if Oprah were as magnanimous as she is portraying herself to be, then she would pick up the taxes. Yeah, right...like that will happen. I am still trying to figure out why this is a news story. Seems like common sense to me. 42761[/snapback] Aw come on, Oprah already shelled out how much for all those cars? Oh yeah.....ZERO.....they were donated by Pontiac. She did nothing but get a huge PR boost for doing nothing. Link to comment Share on other sites More sharing options...
stevestojan Posted September 23, 2004 Share Posted September 23, 2004 I see your point Steve but did Oprah pay to fly all these people to the show, put them up in a hotel and provide them with food? I hardly think so. I'm sure these people aren't living in poverty. If they can't afford to take out a loan for a few thousand dollars to pay for a FREE car then ultimately they probably won't be able to afford gas, insurance or anything else that comes along with owning a car. I see both sides of this but don't think it's UNFAIR for the government to expect to receive taxes. Like I posted earlier, I thought Pontiac was picking up all the taxes. 42826[/snapback] Good point. Oh, and Pontiac picked up local taxes only. Not the "income" tax for receiving the gift. Link to comment Share on other sites More sharing options...
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