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Uncle Sam Spoils Dream Trip To Space
gollum123 writes about a dream come true and a dream dashed. Brian Emmett, a software consultant from the San Francisco Bay area, entered a contest sponsored by Oracle in 2005. He answered some questions on Java coding, won a free trip into space, and then reluctantly gave it up. The latter decision came once he had computed the taxes he would have to pay on the $138,000 prize — roughly $25,000. From the article: "Since the Internal Revenue Service requires winnings from lottery drawings, TV game shows, and other contests to be reported as taxable income, tax experts contend there's no such thing as a free spaceflight. Some contest sponsors provide a check to cover taxes, but that income is also taxable."
Wow, you're a complete idiot. Obviously, I did not say he wouldn't have to pay the 25000. Nor did I say he wouldn't have to pay more for a loan. A loan is a fucking loan. Why the hell would I suggest that a loan does not have interest?
My POINT, which you were apparently too dense to grok, was that if he were a homeowner, he could convert his equity to cash for the current tax burden and receive a tax discount against the interest.
Jesus, get a brain man,
-l
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This place loves taxes! This is a dream come true! The nimrods who post here should be overjoyed. This money can go to pay for tech education for "disadvantaged people" or maybe it can be used to advance the US's spot on the "broadband access" list.
You could sell a car or get a loan on it to pay the taxes on it. In fact the $60k car would have you paying personal property taxes and license on top of federal and state taxes. It's physical property. You could possibly sell the trip, but since a trip couldn't be used as collateral it's not really "property" is it? No it's a service. If you won a free termite inspection would the government come at you for the taxes on a service valued at $100? Hookers charge for sex, if you get it free from someone do you now need to declare it? Oracle should have used an office outside the US to bestow the winnings. That's how John Kerry got to pay less taxes than Bush on millions more. Tax shelters in the Cayman Islands.