Can I transfer a prize I won (a Superbowl Trip) to another individual for money?

[KLMA]

What is the name of your state? Michigan

Hi. I won a trip to the Super Bowl in Houston. It was very exciting, but since we are not huge football fans we have found someone to purchase the trip from us. The trip is valued at around $15,000. This individual is willing to pay us $4000 (plus he knows he'll have to pay the taxes on the $15,000.) I know that I am allowed to transfer the prize because I spoke with the company that I won it from and they sent me a transfer affidavit form. However I've never asked if I'm allowed to make this transfer and receive money for it. (Ignorance is bliss????) Does anyone know of any law that makes it illegal to transfer a prize and receive money for it? Should I make up a form that states that the money he is giving me is a gift...then another form indicating that I am giving him the Super Bowl trip? I just don't want to do anything illegal and end up in jail!!!

Thanks for your help. We are signing the affidavit papers tomorrow morning with a notory at the bank so a quick response would be greatly appreciated!

 

[JETX]

"The trip is valued at around $15,000. This individual is willing to pay us $4000 (plus he knows he'll have to pay the taxes on the $15,000.)"
*** Sorry, not true on that one. You can sell the tickets but you can't sell the tax liability. That is yours. You will have to report the full $15k on YOUR taxes.

"I know that I am allowed to transfer the prize because I spoke with the company that I won it from and they sent me a transfer affidavit form. However I've never asked if I'm allowed to make this transfer and receive money for it. (Ignorance is bliss????)"
*** No problem. Go for it.

"Does anyone know of any law that makes it illegal to transfer a prize and receive money for it?"
*** Yes. And the answer is there isn't.

"Should I make up a form that states that the money he is giving me is a gift...then another form indicating that I am giving him the Super Bowl trip? I just don't want to do anything illegal and end up in jail!!!"
*** Sell him the trip. Report the full value of the prizes won on YOUR taxes. Go for it.


Thanks for your help. We are signing the affidavit papers tomorrow morning with a notory at the bank so a quick response would be greatly appreciated!

 

[KLMA]

Thanks for your quick response. Thankfully, regarding the taxes, I won't have to pay them because when I sign these forms it will be as if I never won. The form says, "I acknowledge I had the winning entry...blah blah... I understand by reason of this transfer that <COMPANY> has no further liability or obligation to me and I hereby waive all claims....

The reason why I know it works that way is because when we sign the forms tomorrow they declare that person the official winner and his form states he is responsible for the taxes. This gentleman will then be treated as the grand prize winner and his name will go on all the publicity releases, etc....

I just feel a bit wierd about this because they'll be treating him as if he won the package, but in reality he had to pay something for it (albeit a great price).

 

[JETX]

I hope that you and the awarding company have this correct (but don't think so). Personally, I think you will find out that YOU are responsible for the taxes.
At the very least, you WILL be responsible for reporting the $4000 that you get and more than likely on the full $15000 value of the prize.

I would suggest you talk with a local CPA or tax attorney to see if you do have any liability.