I tried to watch today, but she kept drooling on John Travolta wo much and talking about his 50th birthday party that she went to that I could not take it anymore.

But the movie Ladder 49 looks good, and drooling on Travolta is my job (or would be, if there was a job competition for it)

Surveysez

That's the same way it works if you win a car in a sweepstakes or somesuch. If they sell it to cover the taxes they can still afford to buy a very nice Taurus or sumpin.

I know the reality is they still get something out of it, but it just seems sad that they can't keep what they were given. Apparently they were all hand picked as being in real need to qualify for the show.

I think that people tend to forget when they go on these game shows and win $50,000 worth of dinette sets and big screen TVs that they will have to pay a gift tax on the value of their winnings? Worst case in this situation, they sell the new car and buy a very nice used car with the proceeds net the federal taxes. They don't have a lot to complain about in either case. On the other hand, Oprah could pay their taxes for them, but then they would owe another tax on that gift. Of course under the tax laws Oprah could make a one time gift to each...oh..just skip it...

"I tried to watch today, but she kept drooling on John Travolta wo much and talking about his 50th birthday party that she went to that I could not take it anymore.
But the movie Ladder 49 looks good, and drooling on Travolta is my job (or would be, if there was a job competition for it)"

I agree that she was most definately drooling on Travolta. But that movie really looks good. I think it is about time firefighters get a little more attention so people can remember how lucky they are to have these heros around.

I think that people tend to forget when they go on these game shows and win $50,000 worth of dinette sets and big screen TVs that they will have to pay a gift tax on the value of their winnings

It's actually not a gift tax; it's federal and state income tax. These audience members had income by virtue of being on the show. They would receive Form 1099s from the Oprah! show that would show the value of the car as additional income.

FWIW, "gift tax" is charged to estates after death. But, while Pontiac is verrrry, verrrry sick, GM hasn't killed it yet.

Worst case in this situation, they sell the new car and buy a very nice used car with the proceeds net the federal taxes. They don't have a lot to complain about in either case.

I agree. If these audience members think they got ripped off, let them change places with me ... or with ginger.

On the other hand, Oprah could pay their taxes for them, but then they would owe another tax on that gift.

Exactly, although this would also be income tax. If someone else pays your taxes for you, you have income.

Of course under the tax laws Oprah could make a one time gift to each...oh..just skip it...

Well, Oprah could gross them up enough on the money she gave them for taxes so that they would have enough income to pay all of their taxes without having to sell the car; there's a formula for calculating the amount that her show would have to pay to each.

I can't see why she'd want to, though. Anyone who complains is simply TOO greedy for words.

Soylent Green: recycling America, one person at a time.

Not to be insensitive (not me) to the plight of having to sell a new car received from a game show or, as given in this example, I should be so lucky to have that kind of bad luck. Some people may be able to pay the tax out of pocket and others will have to sell their gift, but I don't see this being a "hardship" in any shape or form. Also, thanks for explaining the tax situation stemming from winning prizes. What you said is what I meant.

if they wanted to keep the car, couldn't they just get a personal loan using the car as collateral? The payments on a $6000 loan is gonna be less than a car note.

except they're all relatively destitute, and that raises the possibility that their credit is not perfect.

well, it wouldn't be an unsecured loan. I'd hope if you had a 28K car as collateral, you could get a loan to pay the taxes on it.

We once offered to put up our car as collateral for a loan, but the car was too old and they wouldn't use it. They did, however, give us an unsecured loan without a minute's hesitation. I told my then husband - we gotta change banks these people are idiots to give us this money.

FWIW, "gift tax" is charged to estates after death. But, while Pontiac is verrrry, verrrry sick, GM hasn't killed it yet.

Actually gift tax can be taxed on individuals that give/receive gifts over $10,000 or is it $15,000.... I'd have to look it up. Estate taxes are charged to estates after death.

IceCat is da man! GO PACK GO!!!!