Discussion:Game show winnings
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| Revision as of 00:00, 10 June 2009 Claude Rains Fan (Talk | contribs) (I would imagine) ← Previous diff |
Revision as of 06:21, 10 June 2009 Taxea (Talk | contribs) (CRF I doubt any) Next diff → |
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| {{ForumReplyPost|UserID=Claude Rains Fan|Date=10 June 2009|Text=I would imagine that on a show such as "Survivor" they would not only send a 1099 for the $1,000,000 but also for the value of travel, food and lodging before and after the competition. Certainly sounds like line 21 to me. I wonder if the producers recommend backup withholding for the potential winner?}} | {{ForumReplyPost|UserID=Claude Rains Fan|Date=10 June 2009|Text=I would imagine that on a show such as "Survivor" they would not only send a 1099 for the $1,000,000 but also for the value of travel, food and lodging before and after the competition. Certainly sounds like line 21 to me. I wonder if the producers recommend backup withholding for the potential winner?}} | ||
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| + | {{ForumReplyPost|UserID=Taxea|Date=10 June 2009|Text=CRF I doubt any of the issuers of the 1099's take withholding unless there is a law that requires it. Usually if you sell real estate that you own in another state they will automatically withhold a percentage of the gross proceeds but I don't know if this holds for any other type of 1099. They may even refuse to withhold-as companies can with IC's-because it causes additional paperwork for them. In fact, I even doubt that they tell the taxpayer that the winnings will be subject to tax. | ||
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Revision as of 06:21, 10 June 2009
Discussion Forum Index --> Basic Tax Questions --> Game show winnings
Discussion Forum Index --> Tax Questions --> Game show winnings
| 9 June 2009 | |
| A Client wins over $200,000 on Deal or No Deal and receives 1099. I would assume that the full amount would be reported on line 21 of the 1040, but is there anything that can offset that income? Any basis that can be used such as costs while incurred on the show? Pub 17 does not go into much detail about prizes or awards. Thanks. | |
| 9 June 2009 | |
| It's misc income. If it's cash, there's not much you can do.
I had a client who won prizes on The Price Is Right. If it's things, then you can check the local newspapers and price out the items. Make a schedule and show the difference between what the show states is the value and the retail price. You'd report the lower of the two. | |
Harry Boscoe (talk|edits) said: | 9 June 2009 |
| Doesn't somebody want to take the position that this is *gambling* winnings?
After all, "Deal or No Deal" sure looks like a simple game of chance to me... Not like Jeopardy, for example... | |
| 9 June 2009 | |
| You may be able to write off the expenses as a Misc Deduction on Schedule A. I would start by looking at Pub 529. | |
| 9 June 2009 | |
| how could it be gambling? you are always playing with house money. | |
| 9 June 2009 | |
| If there was no FWT or wager, it is unlikely it is gambling - with that amount of money §3402(q) would have been applied. | |
| 9 June 2009 | |
| my client got a 1099 for Deal or No Deal also. I don't remember if the 1099 included the value of the trip to California, but the client was happy, and now owns a condo at the beach. | |
| 9 June 2009 | |
| Illini, your 'always playing with house money' comment made me remember a story about another person whom we both know.
"I'll just bet with my mind" he thought, "If I win I'll add the winnings to my beginning number, and if I lose I'll just subtract, keeping up the total in my mind until my next class at the conference starts." He was up $100, then down $50 then up $75, then down $500. But this wasn't real money, he wasn't betting with real money. He was just betting with his mind. This continued for over an hour. Well, you already know the end of the story......
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| 9 June 2009 | |
| The client should be able to deduct his travel, meals, and lodging expenses on Schedule A, but not to exceed his gross winnings. | |
| 9 June 2009 | |
| Whitten TC Memo 1995-508 might be of interest. Taxpayer was a contestant on Wheel of Fortune.
A concluding paragraph from the decision: Consistent with the foregoing, we conclude that wagering losses must be accounted for and reported separately from the expenses incurred by the taxpayer in order to engage in the underlying wagering transaction. In applying this rule to the facts presented herein, we hold that the expenses incurred by petitioner in order to attend and participate in the “Wheel of Fortune” game show are at best expenses, deductible as a miscellaneous itemized deduction under section 67, rather than wagering losses under section 165(d). In so holding, we reject petitioners' contention that the expenses in issue are tantamount to a bet or wager. Unlike a wager or bet, petitioner incurred the expenses in question in exchange for specific goods and services, such as transportation, meals, and lodging. Further, we doubt that Congress ever intended to allow casual gamblers to treat expenses for transportation, meals, and lodging as anything other than either miscellaneous itemized deductions or nondeductible personal expenses. Consequently, we shall deny petitioners' Motion for Summary Judgment and grant respondent's cross motion. | |
Claude Rains Fan (talk|edits) said: | 10 June 2009 |
| I would imagine that on a show such as "Survivor" they would not only send a 1099 for the $1,000,000 but also for the value of travel, food and lodging before and after the competition. Certainly sounds like line 21 to me. I wonder if the producers recommend backup withholding for the potential winner? | |
| 10 June 2009 | |
| CRF I doubt any of the issuers of the 1099's take withholding unless there is a law that requires it. Usually if you sell real estate that you own in another state they will automatically withhold a percentage of the gross proceeds but I don't know if this holds for any other type of 1099. They may even refuse to withhold-as companies can with IC's-because it causes additional paperwork for them. In fact, I even doubt that they tell the taxpayer that the winnings will be subject to tax. | |
