[quote name=\'uncamark\' date=\'Jun 8 2004, 10:44 AM\'] Rice-a-Roni, the easy side dish you sautee and simmer for flavor perfection--Rice-a-Roni, the San Francisco Treat! [/quote]
Damn good!! I can see a new thread any moment now of fee plugs we all know and love.
OK, a lotta business here. First, THANKS for the PC advice. I'm happily surprised to hear there is pretty widespread consensus on any one hypothesis, and that is about Dell making a superior product. My only clue was that I had it on pretty good authority that Microsoft tests their software using Dells. And I do understand the "watered down" concept of components that are of lesser quality, yet still allow the superior specs to be quoted. I appreciate the education.
Secondly, yes, a contestant has only one option with a prize and that is to forfeit it outright. I kept $100 worth of Raisinettes and Goobers because I found out that I would receive coupons good at retailers as opposed to a dumptruck full of enough candy to send half of LA into a diabetic coma. On the other hand, boxes of Alpine Apple Cider Mix are still in the closet awaiting the next natural disaster. I ultimately learned to forfeit most of the small stuff for which I didn't have a direct use.
I threw a billable hour to my CPA who came back with a definitive answer on the tax question, and it appears to be different than all of our conjecture. Here's the righteous poop:
Fair Market Value is what unrelated parties will pay for an item in the open marketplace. My guy says don't be afraid to use it on the large prizes you may win, such as a motorhome, if you can find some good substantiation for the value you claim. That value, like the value of all prizes, is declared as regular income.
If I can sell a personal asset (not a business asset - something either won on a game show, purchased at a garage sale, or simply lying around the house) at a profit - everybody on e-bay, listen up - by the letter of the law I am required to report any profit on that item. But it is not reported as income, it is reported as a capital gain. (Capital gains are generally taxed at a far lower rate than ordinary income).
Curiously, the IRS will not allow you to claim a capital loss for an item you bought at $100 but were only able to sell for $90. In this kind of transaction gains are taxable, but losses may not be used to offset gains from sales that were profitable. You can use other kinds of capital losses (stock transactions, etc.) to offset the capital gains from these kinds of e-bay (non-business) profitable sales. If you buy and sell crap as a business, even if it is not your primary business, different rules apply and the business gains and/or losses are reported on Schedule C. But that's a whole other can o' crap than the personal tax implications we were talking about.
Going back to one of the original thoughts, no. I don't think it ever makes sense to blow a game on purpose to avoid paying tax on a prize. You can always make the decision to forfeit the prize later. But I guess saying you blew the game on purpose to avoid a tax liability does give you an excuse when trying to explain to a novice why you lost on national TV.
Randy
tvrandywest.com
