View Full Version : Prize Tax ??

tony draper
5th Dec 2007, 19:18
Just watched Judge Judy,she has in front of her two people who enter a contest to win a car,they have a agreement that if either wins the prize it will be sold and the wedge divided betwixt em,so far so good, however the one that actually wins the prize welshes on the deal hence they are in front of said Judge,
The good judge comes down on the side of the wronged party and in calculating the damages she totes up what the person who won the car would have had to fork out to get the vehicle on the road, Judge Judy then says something very strange she has to add to the calculation 15% of the total value of the vehicle the Government whould have claimed as tax on a Prize,or prize winning tax? is this so> do the cousins indeed have to fork out 15% of the value of any prize they win? did one's beady old ear mishear? did one misunderstand? is this so?
****!! one thought were taxes were concerned HMG were the biggest robbing bastards on the planet.

5th Dec 2007, 19:42
No Mr. D there is no tax specifically on prize items. However, one must pay income tax on prizes as our wonderful IRS has ruled that winning a prize is the same as taxable income. The 15% rate is probably the income tax level the people were rated at for their yearly income.

tony draper
5th Dec 2007, 19:47
Buggah! sound like a tax to me, and to think you lot had a rebellion because you thought we were taxing you unfairly.

5th Dec 2007, 19:48
I wish I could disagree with you my friend, sadly I cannot. :(

Life's a Beech
5th Dec 2007, 19:51
Sod that. I'd pay tax on every prize to only pay 15% on income!

tony draper
5th Dec 2007, 19:54
Indeed, and you have paid a terrible price, just think, you could still have been calling yourselves Englishmen.

5th Dec 2007, 20:03
I did not see the program, but was she possibly speaking of a tax that must be paid to register the transfer of ownership in the car? To register the transfer from a private sale in Ontario, for example, take the price of the car and add 14%, 6% Federal GST (an idea stolen from the Brits; used to be 7%) plus 8% Provincial "E%H" tax.

tony draper
5th Dec 2007, 20:12
No twas not that Mr Davaar the good Judge had already toted stuff like that up,she definately defined it as a prize win tax,one had thought it might be some colonial colloquilism,
One was a great fan of Judge Judy until someone here let slip the fact that both parties in the dock are paid two thousand dollars for appearing,which might help explain when the party found to be in the wrong never looks to put out by having damages of say 500 bucks awarded against em, they still finish up fifteen hundred ahead.:uhoh:and peeps wonder why Drapes is such a cynic:(

5th Dec 2007, 20:28
You have to pay federal taxes and state taxes (if the state has an income tax) on lottery prizes...so basically kiss half your lottery win away if you are in a taxable state.


Loose rivets
5th Dec 2007, 20:46
I recall the early days of B&W telly American game shows and my mom saying that some people go broke cos of the taxes on the prizes.

The prize is assessed and the tax due (I don't know from whom) then they find that after using the car or whatever for a few weeks they can't get enough for it to equal what they have paid.

I recall thinking how :mad: unfair that seemed.

Granite Monolith
5th Dec 2007, 21:28
Just watched Judge Judy

...i never read anymore of this thread:oh:

5th Dec 2007, 21:52
I recall the early days of B&W telly American game shows and my mom saying that some people go broke cos of the taxes on the prizes.

That's why on most TV Game Shows today it is cash and prizes. Usually the cash winnings is enough to win pay the taxes. Still, may people have to sell some of their prizes off to pay for the taxes.

But hey, I would love to pay, of say, a tax of around five million bucks for winning a lottery. I'll keep the other 10 or so million.

Shiny side down
5th Dec 2007, 23:02
I thought they had a rebellion because they wanted to make tea with salt water?

5th Dec 2007, 23:16
I thought they had a rebellion because they wanted to make tea with salt water?

Naw, wanted to make it with Bourbon. :p

5th Dec 2007, 23:42
Just watched Judge Judy

From such innocent seed does the misery of man grow strong.

6th Dec 2007, 07:49
Not only are our neighbours done for income tax on their prizes but their lottery prizes are paid over 25 years. If you want it all, right now, you only get the discounted value and then have to pay tax on that!

7th Dec 2007, 11:50
Thought we had to pay tax on either our stake or winnin's.

Used to be how it worked in the bookies.