GIFT TAX QUESTION???????PLEASE HELP...

Hi! I live in the state of Texas and I recently won a jet ski w/trailer that was being given away by a local grocery store and soft drink company. This was the type of give away that you fill out a small form with your name and contact info and they draw the winner from the entries. After I was notified that I had won the drawing, I went to claim my "prize" and was told that I would need to pay $800 for tax, title, and license. I was then contacted by the soft drink company who told me that I would need to also pay an additional $2000 gift tax payment, for a total of $2800. I have been trying to find out whatever I can about gift taxing on the web tonight and so far, everything I have read appears as though the person(s) GIVING the gift are responsible for the gift tax, and that is only applicable when the gift or total of gifts given in a calendar year total over $10,000. Perhaps I am reading this wrong or just not finding the correct reading material. My questions are: this was supposed to be a "free drawing", now I realize that you most likely would be responsible for the tax, title, license, but all of a sudden this "free drawing" has turned into quite an expensive "gift". Am I liable for the gift tax? Please let me know something as soon as possible as I need to determine the disposition I will need to take as to whether or not I will "accept" this "gift" after paying $2800 for it. Seems like false advertising if nothing else! ? ! ?

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by bugsbuni:
Hi! I live in the state of Texas and I recently won a jet ski w/trailer that was being given away by a local grocery store and soft drink company. This was the type of give away that you fill out a small form with your name and contact info and they draw the winner from the entries. After I was notified that I had won the drawing, I went to claim my "prize" and was told that I would need to pay $800 for tax, title, and license. I was then contacted by the soft drink company who told me that I would need to also pay an additional $2000 gift tax payment, for a total of $2800. I have been trying to find out whatever I can about gift taxing on the web tonight and so far, everything I have read appears as though the person(s) GIVING the gift are responsible for the gift tax, and that is only applicable when the gift or total of gifts given in a calendar year total over $10,000. Perhaps I am reading this wrong or just not finding the correct reading material. My questions are: this was supposed to be a "free drawing", now I realize that you most likely would be responsible for the tax, title, license, but all of a sudden this "free drawing" has turned into quite an expensive "gift". Am I liable for the gift tax? Please let me know something as soon as possible as I need to determine the disposition I will need to take as to whether or not I will "accept" this "gift" after paying $2800 for it. Seems like false advertising if nothing else! ? ! ? <HR></BLOCKQUOTE>

You silly wabbit, this is the Real Estate Law BB. Please post your question on the Business Law BB.

Signed,
Elmer Crudd