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Sweepstakes Plus Online Forum > Sweepstakes > Questions & Answers > ARV and your taxes {TY to LIDARKSIDE}
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Author Topic: ARV and your taxes {TY to LIDARKSIDE}  (Read 4430 times)
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Amy Shulkusky
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« on: January 10, 2009, 05:05:45 PM »
Information courtesy of this link ~ http://contests.about.com/od/taxesfinances/ht/FMVvsARV.htm

When you win a sweepstakes prize, you are only required by the IRS to report the fair market value (FMV), not the sponsor's approximate retail value (ARV); but how do you go about finding out what the FMV is and how do you handle the difference on your taxes?  Find out here.

http://contests.about.com/od/taxesfinances/ht/FMVvsARV.htm
« Last Edit: January 08, 2010, 02:26:53 AM by sweepsadv » Logged
"If people make fun of you, you must be doing something right" amy lee

"The government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it." Ronald Reagan

"The bureaucracy is expanding to meet the needs of the expanding bureaucracy" Oscar Wilde
colonel717
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« Reply #1 on: January 12, 2009, 07:03:09 AM »
Wow, thank you so much for that info.  I have won a few tvs that the value was way higher than I could have bought them for at the time.  I just paid the taxes based on the 1099..  Lesson learned for me.  Thanks!!
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lisat821
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« Reply #2 on: January 12, 2009, 07:57:07 AM »
Thanks so much for that info.  I sent it to my mom who won the trip to Sundance coming up next week!  (love to get family members hooked on SA!)

Now it's nice and concise and we can refer back to it when we win lots of stuff!
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rae519
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« Reply #3 on: March 26, 2009, 11:09:20 AM »
The IRS states that the Form 4598 is obsolete.
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jupiterzeus19
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« Reply #4 on: October 28, 2009, 02:44:30 PM »
VERY INFORMATIVE AND RIGHT ON, THANK YOU! Waving
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Amy Shulkusky
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« Reply #5 on: December 07, 2009, 02:15:13 PM »
Quote from: LIDARKSIDE on April 30, 2009, 11:09:06 AM
Quote from: whitecoma on April 30, 2009, 10:53:24 AM
Thanks for the info. Yeah, she is a CPA. I am going to have to find out about this. I try never to cheat on sweeps and sweeps winnings. Bad Karma you know! I try to keep my Karma good and it seems to work out well. I have been very blessed with what has been given!

Here's one section from the IRS that defines reporting prizes (Page 4, Box 3, Other Income):

http://www.irs.gov/pub/irs-pdf/i1099msc.pdf

It's pretty straight up--report the required reported income of $600.00 or more on 1099's, and report other prizes and awards.  You'll notice that they don't define prizes as those that are reportable and those that aren't.  It's straight up "also enter in Box 3 prizes and awards...".  There are three exceptions, but you'll see none cover winning and accepting a prize.
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"If people make fun of you, you must be doing something right" amy lee

"The government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it." Ronald Reagan

"The bureaucracy is expanding to meet the needs of the expanding bureaucracy" Oscar Wilde
Amy Shulkusky
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« Reply #6 on: March 24, 2012, 05:54:13 PM »
Quote from: Amy Shulkusky on March 22, 2012, 08:40:12 AM
Many times I've read posts where the winner took the time to contact the sponsor to determine if they *had* to do an affy when they won a lower tier prize - most of the time, the answer was yes.

But, unless you ask, you don't know if they only had one type of form and only those who won prizes worth $600 or more really needed to get the form notarized.

I guess the people doing the fulfillment just assume?  scratch
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"If people make fun of you, you must be doing something right" amy lee

"The government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it." Ronald Reagan

"The bureaucracy is expanding to meet the needs of the expanding bureaucracy" Oscar Wilde
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