Quote:
Originally Posted by Dadhawk
Yea, I also think the MRP is sometimes inflated. My mother-in-law was on Wheel of Fortune back when everything was a prize (no cash). She won about $7,000 worth of "stuff" that all could have been purchased outright for about the tax she paid on it.
|
Yeah - the tax aspect kills some "winnings".
With some products (jewelry for example), the actually price you pay is usually less than half the full retail price. If you won jewelry as a prize, the taxes could exceed the value. (that said, prize income can be offset by ALL incurred expenses associated with winning that prize. On a TV show, I'd deduct all travel, lodging and food costs, along with any clothes purchased to wear, etc. to reduce income tax liability.)
In many cases, you can opt for a cash prize instead.