Lets say I win a car that has the value of about $16,500. I know I will be getting a 1099 for my income taxes on the car. Will I also be liable for the sales tax on the car?
I know we have alot of people with great tax knowledge on here.
you will be liable for the sales tax on the car when you accept it.
It’s not “sales tax” it’s income tax. The 1099 will indicate ~$16,500 of additional income, but you weren’t paid money, you were given a car of that value. Even in the lower brackets I think you’ll owe at least $3k in additional income tax.
You will not pay the 6 or 7% “sales tax.” You will be taxed on the value of the car as part of your income. It’s considered previously untaxed income that you got as if you were being paid as an independent contractor.
Lets say youre a lucky sombitch. thats all…oh and whats up with the lack of texting me about it.
LOL,
I got the paper work last night and will be sending in today. I didn’t want to get my hopes up.
What kind of car did u win?
Does that mean I get the keep the GP sitting in my shop 
lol, I hope to see that sometime next week :bigthumb:
I don’t want to get my hopes up but its the Focus from the Knight Rider sweepstakes. I need to over night the paper work back and then see what happens.
I will believe it when its sitting at my house.
Hopefully it will be done… we fixed the rad support, we need the hood to continue… need it to line everything up so that we can paint it. As long as it comes on Monday, we should be good to go!
Good luck on the car!!!
I have been checking on it and its at the terminal out near harrisburg. It should be at your place on Monday. I am really looking forward to getting it back. I have a pile of shit to add on when it comes home.
By any chance is it being shipped in from Nigeria? 
LOL, I was afraid of that to start with. I researched the compliance company that contacted me and they do all of the sweepstakes stuff for NBC and Sony.
dont you have to pay sales tax on a car when you transfer the title, regardless of how little you actually paid for the car?
Thats what I was thinknig too. I thought the only way out of it was:
A) being transfered from parent to child or child to parent
B) The the person giving the car pays the sales tax i.e, NBC…
PA got fed up with people putting $1 for car sales to get out of taxes that they now just have a “gift” form you have to fill out separate.
correct, in which u pay sales tax on NADA value
I don’t have anything to add, but is this what you won??
Never seen that before. This one would be a 08 Focus SES sedan