re: Winning a car-tax question

quote:

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I agree with you there, but not sure how you would claim the "loss". If the full amount is not reported, a notice from the IRS is sure to follow. Would the loss be claimed on Sch D?

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No, the income would be reported as other income on line 21 as "prize money see stmt." I would attach a statement that reported the prize amount per the 1099-Misc and a line item "expenses paid to collect the prize" with the net amount equaling what I reported on line 21.