B
bugsbuni
Guest
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! ? ! ?
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! ? ! ?