If you win the Hasbro Sweepstakes, what will you do? - Page 5

digger1111 · #49 June 26th, 2006, 11:49 PM

Quote:

Originally Posted by jcb231

Quote:

Originally Posted by digger1111

20-25% on taxes most likely. Its on a case by case basis according to your income. If you're rich enough to be in the 35% category, you probably already own plenty of heroscape.

Sigh....yet another person who misunderstands our tax laws. This is why they need to be simplified and revised.

Just going off what the CPA in the house with 30 years experience said.

Agent Minivann · #50 June 27th, 2006, 03:35 AM

The dollar value of the prize would have to be declared income, as skyknight indicated. The actual tax would be determined once all income is totalled, and deductions subtracted, etc. etc. The percentage is based on the total income. For some in the high tax brackets, the tax will be pretty steep, but the ability to pay the tax will be good. For the lower income brackets, the taxes will be MUCH smaller, if there are any at all. Something that might be a problem for the lower income folks is that they may have to file a 1040 form instead of one of the "simpler" forms.

And yes the tax system needs to be overhauled. A flat tax or a consumption (sales) tax would be about as simple as it gets. So that being said, it won't happen in my life time.

skyknight · #51 June 27th, 2006, 06:28 AM

My prize winnings are being directly added to what my wife and I make. Agent MInivan is correct. I tried to get it put in my sons name because taxes are much less on him. Hasbro gave me a big NO. So at the end of the year I have 15,000 income that has been untaxed. At my current tax rate this will drop me at about a $2500 payment on this prize. I am reposting this because I do not think many of you are reading prior posts.

pashadowops · #52 June 27th, 2006, 11:35 AM

Thank you Agent Minivan & skyknight for bringing this tax issue to a close. As I followed this thread I was wondering when someone would get it right. Both of you are correct. The 1099 the winner receives with the fair market value of the prize will be added to the rest of their income and be taxed accordingly plus (please correct me if I'm wrong) the winner is also responsible for any sales tax, though I don't know how that would work if the winner is out of state.

If you take the fair market value of about $1285 and tax it at a rate of 25% the tax comes out to about $320. The sales tax at a 6% rate is about $77. I'm sure several of you have done the math already but for those of you who haven't......there you are. These figures, however are not (IMO) realistic. I figure when it all comes out in the wash, a person with an income of lets say 50k/yr once the 1099 is added may have to pay an additional...I don't know...$180 - $200 give or take a little.

If this is too heavy for this board please let me know and I will crawl back under my rock. Otherwise I hope this information helps.

toddrew · #53 June 27th, 2006, 01:22 PM

Posed my question then lost track of this thread - thanks, skynight, Mini, and pashadowops. Never having won a prize more substantial than a pair of knee pads from an online skateshop, I was confusing the tax on the prize with the tax on gambling winnings (in most cases applied directly to the winnings at a flat rate, not pooled with other income and computed at year's end.)

digger1111 · #54 June 27th, 2006, 05:48 PM

Quote:

Originally Posted by pashadowops

Thank you Agent Minivan & skyknight for bringing this tax issue to a close. As I followed this thread I was wondering when someone would get it right. Both of you are correct. The 1099 the winner receives with the fair market value of the prize will be added to the rest of their income and be taxed accordingly plus (please correct me if I'm wrong) the winner is also responsible for any sales tax, though I don't know how that would work if the winner is out of state.

If you take the fair market value of about $1285 and tax it at a rate of 25% the tax comes out to about $320. The sales tax at a 6% rate is about $77. I'm sure several of you have done the math already but for those of you who haven't......there you are. These figures, however are not (IMO) realistic. I figure when it all comes out in the wash, a person with an income of lets say 50k/yr once the 1099 is added may have to pay an additional...I don't know...$180 - $200 give or take a little.

If this is too heavy for this board please let me know and I will crawl back under my rock. Otherwise I hope this information helps.

I agree with your statements. Pretty much what I said and I got bashed.

quixotequest · #55 June 27th, 2006, 10:59 PM

My wife won a trip for us to go to Europe through The Amazing Race this year. That trip will nick us on taxes, but it's still cheaper than paying to go there without it. We're thinking of it like an 60% discount on a trip of a lifetime. We've probably depleted our "luck deposits" for a while but I'd happily pay taxes if I won in the Hasbro sweeps. Why not spend 30 cents to make another 70¢ in free product--or just take the cash equivalent (if Hasbro offers the option)?

Agent Minivann · #56 June 28th, 2006, 06:10 AM

Quote:

Originally Posted by quixotequest

My wife won a trip for us to go to Europe through The Amazing Race this year. That trip will nick us on taxes, but it's still cheaper than paying to go there without it. We're thinking of it like an 60% discount on a trip of a lifetime. We've probably depleted our "luck deposits" for a while but I'd happily pay taxes if I won in the Hasbro sweeps. Why not spend 30 cents to make another 70¢ in free product--or just take the cash equivalent (if Hasbro offers the option)?

If I'm following correctly, can I have one of your paychecks?

And toddrew what kind of rate do they tax your gambling winnings? ( I don't gamble, so I have no idea) IIRC the 1040 has a slot for gambling winnings. Now that I've typed that it makes a lot of sense. If you win something that has to be reported, they take the taxes out BEFORE you spend it all on further gambling. Then when you file you get to report gambling income paid to you and then gambling related taxes that were paid by you. In most cases you come pretty close to even, or get a refund.

bad_calvin · #57 June 30th, 2006, 09:35 AM

I am going to Ohio and having a kick huge battle royale with Truth-CupidsArt-BigHam- and the rest!
That is what ...

Yautjahunter · #58 July 1st, 2006, 09:29 PM

blasted contest after I spent about 10 min. looking at the rules I think they divide the listed products into 5 groups but if ya get the whole thing whoa...thats a lot-o-plastic

If I win first I'd buy a few more tabels to build it and with my copies of all heroscape(cept for nerak hes a promo he dont count ok) I would make a freakin sweet battlefield but to my demise these friggin cats would just go and lay EVERYWHERE on it

Hex_Enduction_Hour · #59 July 1st, 2006, 09:45 PM

Quote:

Originally Posted by LilNewbie

I would also put one of each item into storage, take some of the items for my collection, use some of the items for customs.

I would love to see your storage. Or your collection.

Widigo · #60 July 2nd, 2006, 12:48 AM

I would take a copy of every figure and store them in an air tight facility unopened. I would take one copy of each and open it and store them in battle stances and such in a giant wall to wall glass shelf (I do not know how I would buy that. I would make the blue playing board in the 3rd codex. I would flock every tile (pond sides and everything) then I would buy ten storage containers get nether stickers, and sort them all out. Then I would go and have enough spare parts to be editing figures for a couple years.
Saying all this makes me want to enter, but I wouldn't win.

I would not give them away, I would give my customs that after five master sets worth of proactive would be bitchen and give those away.

I would change my room and with that much I could convince my friends to play (or swim in HS minis)