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Winning a car-tax question
Posted on 1/19/14 at 7:44 pm
Posted on 1/19/14 at 7:44 pm
What would be the tax implications in this scenario? You win a car in a contest. Pay taxes on the car and register the vehicle, then re-sell the car back to the dealership. Would you need to claim the money earned from selling the car back to the dealership on your taxes?
Note: The car was won in Mississippi and then registered/paid tax in Louisiana. Then sold back to dealership in Mississippi.
Note: The car was won in Mississippi and then registered/paid tax in Louisiana. Then sold back to dealership in Mississippi.
4
Posted on 1/19/14 at 7:58 pm to WhoGeaux
You're going to have to pay taxes on the value on that vehicle.
Posted on 1/19/14 at 8:24 pm to WhoGeaux
I would think you pay income tax on full amount, plus sales tax on full amount in state/parish of residency ?
Posted on 1/20/14 at 8:57 am to WhoGeaux
How did you win it? If you won it at a casino, they should give you a W-2G for the value of the car. You will claim this amount on your income taxes. When you sell it back to the dealership, your basis in the car is the amount from the W-2G plus the taxes and registration fees to Louisiana. If you sell it for more than that, then you must pay taxes on the gain. However, if you sell it for less than your basis, you can not claim a loss.
Posted on 1/20/14 at 12:11 pm to WhoGeaux
Go to the fairgrounds and gather enough receipts showing a loss equal to the amount of the car you won
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