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Here's a bit of a different eBay auction.

For the TV show "The Riches" they are auctioning off for charity a lunch with Minnie Driver, a briefcase from the show, a couple autographed items, and $100k.

How would you calculate the taxes due?

My guess would be that you'd need to put a value on the non-cash prices. To me they aren't worth much, but let's say for the example that they were worth $5k, and the winning bid was $60k. That would make the prize minus price paid for the prize to be $45k. I would assume this $45k would then be taxed at your normal Fed tax bracket rates, and seem to barely remember a line number for winnings on the Fed 1040 form.

But one thing that makes me wonder if it's this straight forward is that the winning bid is going to charity, but the $100k is coming from the FX tv network. It is part of the prize, and I wouldn't think the source would matter, but could also see this making things more complicated.

I'm mostly just curious about how this sort of thing would work, though I suppose if the bid is low enough in 5 days I would be interested.


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