if you win the give away car at L'VILLE

Man, I loved that car...and still do. I think that and the orange '57 they built about the same time were the best cars Hot Rod built. Either one would still be in my garage, too, had I won them. You are one blessed man!

 

if you have to pay for it it is hardly a giveaway car.

so what happens if you win and don't have thousands of dollars to pay the taxes?

 

..............Quicken Loans.

 

Here you go...'32 Highboy.

http://gallery.pagecustoms.com/NSRA-2012-Giveaway-Car?&page=1

 

Is that the way it really works?

Seems like I've seen some cars built by some pretty well know shops.

 

That only applies to Tax Exempt Organizations, ie IRS recognized 501 Charities - the NSRA is NOT a Charity, so those rules do not apply. When it is a Raffle by a for profit enterprise you do not have to declare or pay until the applicable tax filing time.
Also you do NOT have to pay the taxes based on what the NSRA says it is worth, you are only required by the IRS to report the fair market value (FMV), not the sponsor's approximate retail value (ARV).
Let's say the NSRA claims the car to be worth $100,000. You do market research and can substantiate that it is only worth $50,000. Your first step would be to ask the NSRA to lower the amount on the 1099 filing. If they refuse to do so, ask the IRS ask them to send a Form 4598, Form 1099 Not Received or Incorrect to the sponsor. This step is not absolutely necessary, but it reinforces your claim that the prize was incorrectly valued, if the IRS wonders why the amount has been changed on your tax return.

Even if it varies from the value on the 1099 form, enter the FMV under 'Other Income' on your 1040 form. In order to show the proper amount on your tax forms, submit the difference between the reported ARV and your FMV as a negative amount. List it under Other Miscellaneous Income with the description "Prize FMV Adjustment." Make sure to keep your do***entation of the Fair Market Value of your prize win. The IRS may well question why your valuation of the prize varies from the sponsor's, and you want to have solid proof to back up your claim. If you do not have any solid proof of the correct FMV, then you have to go with the amount listed on the 1099 form.
It's not easy, but it can be done so that you are not stuck paying taxes for an inflated value. Of course if it is worth what they say, they you have to pay your taxes!

 

My late ex-wife won a boat in a local radio station giveaway one time. We divorced and I got stuck with the tax bill plus penalties and interest. I figure the three times I rode in that "free" boat cost me around three grand... EACH!

 

Man, it would actually break my heart to win that car right now, only because I wouldn't be able to keep it FINANCIALLY. Couldn't even pay the taxes on a FREE car, Lol. Beautiful car though.

 

I gotta admit this car looks pretty good compared to some in the past. HRP

 

I had a friend once win a motorcycle and he had to sell it to cover the taxes because of two things one he didn't have the cash and two he could not borrow the cash against the motor cycle.

Guess it was a good thing actually, giving him a motor cycle was like giving a loaded gun to a manic depressive.

 

I just can't get past the fact that the door hinges aren't painted to match the car or at least chromed. That was the first thing I noticed when I saw it in Streetscene and now that is all I see.
I'm not saying I'd turn it down if I won, but that is one of the first things I'd fix on it. My favorite is still the Model A woodie from the first Louisville nats (1988?)

 

Damn you, now that's all I fixate on as well.

 

Make sure your drivers license matches your registration and your car is on the fairgrounds. I have heard from the past that was an issue with winners & search PETEJOE and his roadster p/u win a handful of years back.....he had to fix some stuff to drive it.

Asking this question is like saying how much will I have to pay in taxes if I win the lottery.......I will give you a nickle if you win it and walk up front and say that you don't want it in front of 10,000 people.

 

You either sell the car and pay the income tax on the value of the car or float a loan on the car and make payments on it.

I had a friend who bought a ticket on a Lions club raffle for a 50 Merc four door a few years ago. The club selling the tickets had advertised the car as having a 11,000 value (late 80's early 90's) He ended up paying income tax on 11K and paying the state of Washington sales tax on 11 K when he registered it. At that time it was probably a good 5K car. I saw him and his grand kids cruising though a parade in it a year or two ago and usually he only drives it when the grand kids want to go for a ride or he puts it in one of the local parades. The car hasn't changed from the day he got it and probably actually is worth that 11K now.

At any rate you will end up paying fed income tax on what ever the people giving the car says it is valued at plus possibly state income tax and or state sales tax when you register it if you register it. The local casino is always giving away cars or Harleys and I think you can count the cars and bikes that people actually took as apposed to taking cash on one hand over the past 5 years.

 

that givaway car has no soul. probably not an old part, or one off hand made part on the whole car.


You either sell the car and pay the income tax on the value of the car or float a loan on the car and make payments on it.


thing is you don't own it until you pay for it so how could a guy get a loan or sell a car they do not own? just give me cash please.

 

NOT necessarily true if you understand the IRS rules about this. Read my previous post and you'll see how you can lower the value to Fair market Value and only have to pay the taxes on that. Most people don't know this and just pay based on whatever they were told it was worth.

 

You guys crack me up,,we all change a car to suite our taste but to keep *****ing about it is just crazy,,I ain't going to the NATIONALS but if I did and they called my number I would gladly pay the taxes. HRP

 

If you win the lottery you have cash in hand to pay the taxes with. Ten you can build your own car anyway you want or pay someome to do it for you.

 

Totally OT... won a stinkin' Ipod at a bank opening a few months ago... they shook my hand, took my picture and shoved a W2 form to fill out under my nose...

Bob

 

Kinda the way I see it. I'll bet there are more one off, custom made parts on the give away car than there were on a fresh off the ***embly line Ford in 1932.

 

Back about 1986 a guy I worked with won a new costomized Renault Fueago. The car was built by Cars & Concepts of Brighton Mi. The sticker price was about $33k. A new Fueago was selling at the dealer for about $14K out the door. The dealer offered him $8K for the car, and the taxes owed were over $9K. I think he hired a tax lawer to fight the IRS,so he could give the away.

 

Old or new, where's the soul factor come in?

 

I wasn't talking old or new, just hand made.

"..... or one off hand made part on the whole car."

 

Wow----Just like the original conversation, the answers were all over the place. One answer is pretty consistant, if you win it, it's gonna cost you, even if you sell it. If you keep it, you better cozy up to good tax man. As far as the looks of the car, I can paint the door hinges and I'd do Halibrands and black walls, but thats just me. Come Saturday maybe some HAMBer will have a new story to tell, Hope so. Thanks for all the interest. BILL RINALDI

 

The 57 was in 1984. I was there, and it looked good. I had followed the built in HRM, and was in love before i saw it in real life.
Lars