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[Doth Togo]

http://www.suntimes.com/output/news/cst-nws-oprah22.html

Quote »

By adding $28,500 to someone's income, it can push them into a higher tax bracket -- which means they will have to pay about 25 percent or more of the car's value in taxes. And for a nearly $30,000 car, that probably means, for most of the recipients, shelling out $7,125 for the "free car."

And if you live in Illinois, you can expect to tack on another 3 percent or so in state income taxes.

 

[Ecrofirt]

Well you don't say.

 

[Ninja Scooter]

well played doth togo...

 

[Miguel]

Doth Togo = http://ga-forum.com/showthread.php?t=15553
Ripclawe = http://ga-forum.com/showthread.php?t=15554


Doth Togo wins...

FRAWLESS VICTOLY!

 

[Teddman]

Selling it on eBay as "One of the famous cars Oprah gave away, complete with a certificate from the show!" ought to get somebody well above sticker price.

 

[Tazznum1]

Who would pay more? The cars are not even delivered yet.

Oh...forgot - idiot Ebayers.

 

[Ecrofirt]

How was your GAF break, Tazz?

 

[Brian Fellows]

I remember when my dad won a "free" Chevy S10 from where he works he has to pay about a grands on it.

 

[Tazznum1]

Good. I had to wait for some people to be banned and decided to take the summer off.


But now I'm addicted to Sims 2.

 

[DarthWoo]

Well duh, any prize/award incurs tax. That's why it's much better to win cash than goods, because then you can just throw some of the cash back at the evil IRS rather than having to shell out your own money.

 

[Nikashi]

You don't get taxed on winnings up here, and no stupid payment schedules for lotteries. (If you win $10,000,000, you get a cheque for $10,000,000, tax free)

 

[OmniGamer]

I thought it was stated that they were going to pay the taxes on it(or is this different from the sales tax on the car, and is more of an income tax thing?)

 

[Ninja Scooter]

You don't get taxed on winnings up here, and no stupid payment schedules for lotteries. (If you win $10,000,000, you get a cheque for $10,000,000, tax free)

but you have to spell 'check' like that, so the good and bad just cancel each other out.

 

[DarthWoo]

I thought it was stated that they were going to pay the taxes on it(or is this different from the sales tax on the car, and is more of an income tax thing?)

The only problem on that, is that then the money Oprah gives them to cover tax is also income, which is taxable. If they pay the tax for that, that is taxable income again, and so on. Tis a vicious cycle.

Edit: A prize is income, so it is income tax. I don't think a sales tax would apply, since Oprah's company probably already covered that in purchasing the things.

 

[darscot]

Man people can bitch about anything. She gave them a fricken car and I've heard nothing but negative spin about how she didnt have to pay for them and they have to pay the tax.

 

[DarienA]

Man people can bitch about anything. She gave them a fricken car and I've heard nothing but negative spin about how she didnt have to pay for them and they have to pay the tax.

Some of these people can't afford a car, let alone a downpayment to own a car... what makes you think they can afford the taxes on it?

+1 Oprah
-1 Oprah

 

[darscot]

So they sell the car and make 20 grand plus. Boo frickin hoo.

 

[Memles]

Some of these people can't afford a car, let alone a downpayment to own a car... what makes you think they can afford the taxes on it?

+1 Oprah
-1 Oprah

I'm sure if they went to the bank and said "I need a loan to pay off the taxes on the car I got from Oprah" they'd make out alright.

 

[DarienA]

So they sell the car and make 20 grand plus. Boo frickin hoo.

The tax has to be paid before they can get the car you know. And this isn't just federal tax if you bring a car in to many states you are taxed based on the value of the car, I found that out the hard way when I moved to MD and brought my car here.

Some recipients are going to wait a few months before actually picking up their cars so they can figure out how to pay for the taxes.

"We have to pick the car up between Oct. 1, 2004, and Feb. 28, 2005," said Nelson. "We've decided that we are going to wait until the first of the year so we can have all of 2005 and the first four months of 2006 to figure out how to pay for this.

So it's not like they get the car, then sell it before income tax time and pay this tax.. the state and federal taxes associate with these vehicles must be paid first.

They still got a good deal, but it's gonna take a bit of work to see the true fruits of the deal. Too bad Oprah didn't sign something on these cars, I'd like to see one of em on eBay. Though I'm sure some will end up there regardless... 'GET THE G6 I GOT FROM OPRAH!!!!"

 

[SKluck]

How do you figure they have to pay tax before they get the car? I assume they just have to declare it on their taxes.

Seems kind of hokey though. Oprah pays tax on the car to buy it. Gives it to someone, not sells, and they pay tax again because it is INCOME? WTF.

 

[darscot]

If you that big of useless tit that you can't make getting a free car work for you, do us all a favor and put yourself out of your misery. Also if your too much of a miserable tit that you must constantly try and spin getting a free car as a bad thing your in the same group as mentioned above.

 

[Tazznum1]

Sales tax was paid by Pontiac. This has to do with income tax. This was a prize. You must declare this on your income tax. Again, if you pick this car up in Feb. you pay nothing until April 2006 on your income taxes. You can sell the car and then take that money out of the sale to pay the taxes.

 

[mrmyth]

Its been reported here in Chicago that Pontiac has agreed to cover all taxes. Believe me, Oprah would not let something like this give her bad publicity. She's been extra careful ever since the beef incident.

 

[DarienA]

How do you figure they have to pay tax before they get the car? I assume they just have to declare it on their taxes.

Seems kind of hokey though. Oprah pays tax on the car to buy it. Gives it to someone, not sells, and they pay tax again because it is INCOME? WTF.

AND

Sales tax was paid by Pontiac. This has to do with income tax. This was a prize. You must declare this on your income tax. Again, if you pick this car up in Feb. you pay nothing until April 2006 on your income taxes. You can sell the car and then take that money out of the sale to pay the taxes.

I thought the article said the people themselves were responsible for the licensing tax..i.e. the tax you are charged for bringing/registering the car in to your home state?

Oh ok I misread they just have to deal with the income tax... my bad.

 

[Doth Togo]

$7k for a new car. While it's a deal to many people, for those that cannot afford a new car, having to forcefully scrape up the money can be tough.

I'd pick the car up in January 2005 as it would fall under US Tax laws a 2005 prize. Then, I'd sell it immediately and pay off the taxes on the car. You'd end up with roughly $20k afterwards, maybe a little bit less.

 

[shuri]

Its been reported here in Chicago that Pontiac has agreed to cover all taxes. Believe me, Oprah would not let something like this give her bad publicity. She's been extra careful ever since the beef incident.

Oprah's Beer Incident? I'm having all sorts of mental images here. What happened?

 

[open_mouth_]

If they can't afford the taxes, then they could just sell the car for 28K, then keep 20k or so. Oprah just negotiated with 3rd parties to give those fans 20k for FREE, which then can be used to buy another, quite suitable, car for 20k, which will, still be FREE.

 

[DarthWoo]

Oprah's Beer Incident? I'm having all sorts of mental images here. What happened?

Not sure if you're being sarcastic with that typo, but if you don't know about it, here goes. A few years ago, during the whole mad cow disease uproar, Oprah openly criticized the beef industry on the show. Numerous people from that industry accused her of fear-mongering without presenting all the facts, and that her comments had cost them millions of dollars in lost sales. I think they sued, but it was a while ago, so I don't remember it all either.

 

[robot]

touché Oprah Winfrey....touché