Won a Kia Rio, so I am told

[RESORT2ME Senior Member Find all posts View Profile Close RESORT2ME]

When we purchased our car, the salesman placed 7 tickets in the "hat".
He told me so, when we returned from Florida. It was a black stick-shift Rio.

I told him that car is mine... you and these people here better take care of my car.

The salesman called this late afternoon saying my ticket was one of ten. I again reminded him of what I said. About 1.5 hours later, I got a call... the guy said he was Head of the place and congratulated me. There was much cheering in the background.

The salesman came on the phone and also congratulated me. I shall be contacted Monday or Tuesday to finalize the deal.

Ok, if I did win a 2011 Rio, what do I need to be prepared for?

Do I pay 50% tax on winning? Processing fee? etc, etc?
Can I avoid processing fees by doing some of my own legwork?

I expect I'll have to pay out $5000 to drive the WINNING car away.
Can I expect the TS treatment of upgrade to something else for $15000?

How do I find out if several others also were winners? Maybe wander into the place every couple hours?

Robert

[Nancy Platinum Contributor Find all posts View Profile Close Nancy]

Congrats. Hope it all works out okay.

Nancy

[wackymother Senior Member Find all posts View Profile Close wackymother]

Wow! I hope it works out--those are cute cars!

BTW, once I won $500 in one of those "the more you use your Visa, the more chances you have to win!" contests. Visa called and said, "You won $500 in that contest. I'll read off your address. You'll see the credit on your statement." (I didn't give them my credit card number, of course!) I was sure it was a scam, but sure enough, months later, a $500 credit appeared on my card! So sometimes you really do win something!

[jackio Gold Contributor Find all posts View Profile Close jackio]

Wonderful - congratulations!
I would think you may have to claim the value of the car on your income tax, and maybe pay sales tax. Still - a pretty good deal!

[falmouth3 Senior Member Find all posts View Profile Close falmouth3]

Congrats!

I don't know the details of what you'll have to pay in taxes. I won a trip to Universal Studios through the Boston Globe. From what I understand, I will get a W-whatever form stating that the prize is worth $3500. I think I'll probably end up paying more in taxes than I could get the trip for on my own, but I'm going to go and enjoy it - no matter what.

[joycapecod Silver Contributor Find all posts View Profile Close joycapecod]

I work for an auto dealer and when we had a "give away" several years ago the winner was required to pay sales tax, registration fees (including title and license plates). He received a 1099M for the value of the car. He needed to claim the prize as income on his income taxes.

If there is a way for you to defer accepting the prize until after January 1, 2011 you will have more time to adjust your withholding taxes and will then likely not have a penalty to pay for under withholding of income taxes. If I remember correctly you are retired and receive pension income that is subject to tax withholding?

Joy

[bigfrank Administrator Find all posts View Profile Close bigfrank]

Wow what a Xmas present, Congrats

[Pat H Senior Member Find all posts View Profile Close Pat H]

Congrats, Robert. It's your present for having to spend part of your vacation in the hospital!

[grest Senior Member Find all posts View Profile Close grest]

Congratulations! what did you find out about fees etc...in case I should ever win a car(!).

[RESORT2ME Senior Member Find all posts View Profile Close RESORT2ME]

Still waiting

Believe it or not, nobody seems to be running the show at Kia dealership on this drawing. Maybe they've not gone here before.
Nobody seems to know if I pay GIFT Tax to UNCLE on this.

Tomorrow AM, I hope they have it all figured, as I want the paperwork according to plan;

Grandson is here for the holidays. He flies back to TN Sun. (2 Jan, 2011).
Tomorrow, Friday (end of year) I plan to transfer the title of my Chrysler LHS to this grandson.

The VA tags from the LHS, I want to put on the Kia Rio, but I don't want to take posession until 3 Jan, 2011.

Grandson is to get TN tag to me so our son can drive the LHS to TN in time to watch Super Bowl with his son (Feb 2nd).

[Marti Super Moderator Find all posts View Profile Close Marti]

IRS Form 1099

You must report this income on Form 1040 - Line 21
You pay taxes according to you income tax bracket.

If you win a car, the awarding organization will give you a copy of this form when you take possession of the car. You will fill out the1099-MISC form with the current fair market value of the prize. The organization will also give the IRS a copy with the manufacturer's suggested retail price on the form.

You are expected to file this with your tax return.

[RESORT2ME Senior Member Find all posts View Profile Close RESORT2ME]

A KIA Rio 4DR LX will be mine on Tuesday, 11 January.
It has manual transmission, manual windows and air conditioning.
It is Black with Gray interior
Delivered Price $13,900.00

KIA claims I must take possession to complete their “drawing” give-away.

KIA will not give me the new-car value toward any of their other vehicles, even though they know it is a new car.
Once I take possession, KIA will only allow trade-in value toward any of their vehicle.

[jackio Gold Contributor Find all posts View Profile Close jackio]

Well congratulations!
I am sure if you don't want it, you can re-sell it for less than retail, but more than you have today!

[joycapecod Silver Contributor Find all posts View Profile Close joycapecod]

Ask them if they will give you invoice less holdback and advertising toward a different new Kia.

It will be a less than the $13,900, but then you could get what you want. The dealer, as long as the certificate of origin is not assigned to you (and actually the certificate of origin could have a voided assignment) can still sell the vehicle as new.

Joy

[joycapecod Silver Contributor Find all posts View Profile Close joycapecod]

You must report this income on Form 1040 - Line 21
You pay taxes according to you income tax bracket.

If you win a car, the awarding organization will give you a copy of this form when you take possession of the car. You will fill out the1099-MISC form with the current fair market value of the prize. [B]The organization will also give the IRS a copy with the manufacturer's suggested retail price on the form. [B] You are expected to file this with your tax return.

Actually the dealership (or KIA Motors of America) will fill out the 1099-Misc, file it with the IRS and supply a copy to the winner. It is not the responsibility of the recipient to fill out the 1099-Misc.

Only one value will be used for the 1099-MISC and that will likely be MSRP (Manufacture's suggested retail price). That amount can be backed up with the Monroney Sticker which should be given the the Robert at time of delivery.

When income taxes are files the 1099-Misc becomes part of income and recorded on line 21 of your 1040.

I think you wise to take delivery after January 1, as this will likely have a huge effect on your 2011 tax situation.

Joy