UnThreaded | Threaded | Whole Thread (16) | Ignore Thread Prev | Next
Author: TMFJeanie Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 469  
Subject: Re: Financial Implications of Winning the Game Date: 4/24/2006 12:58 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 8
There is no big tangible (like a car) the winner could sell to help pay the windfall tax.

The total retail value of all the "sellable" items is less than $8K, and you couldn't get full value for them anway.... so, this Grand Prize is more of an albatross.

Who's going to take a hundred-thousand-dollar vacation that will put them in debt to Uncle Sam to the tune of $60k? Heck, if I had a discretionary $60k and a few months to research Expedia, I could probably duplicate that vacation and take 6 people instead of 4.

Very clever Hollywood Marketing & Accounting Techniques! They probably designed this contest knowing full well that the winner will never accept the prize once the liabiity is spelled out to him/her.

I once ran a sweepstakes in which we gave away a perfectly restored 1947 Buick Roadmaster (like the "Rainman" car). I tied my promotion into Buick's reintroduction of the Roadmaster that year (c. 1992-93). The ultimate winner was given the choice of the antique, or a brand new Buick Roadmaster. He chose the antique because he was a fan of old cars and it was a spectacular restoration. He signed the tax liability acknowledgement form we provided him at that time. That was in October. In March, the man called me - shaken - he'd just learned what his taxes would be, and begged us to buy the car back from him. We did.

"Careful what you wish for" :-)


Jeanie
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (16) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Value Hounds

Mylan Transitioning from Generics
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement