I've been thinking about the tax implications, if, in the 1 in 10000 chance, I won.
I've read the tax rules on this:
If you win a prize or award in a lucky number drawing, television or radio quiz program, beauty contest, or other event, you must include its fair market value in your taxable income and report it on your tax return. For example, if you win a $50 prize or award in a photography contest, you must report this taxable income on Line 21 of Form 1040.
However, if your award or prize meets all of the following four tests it is not taxable on your tax return:
it is in recognition of religious, charitable, scientific, educational, artistic, literary, or civic achievement;
you do not have to perform services;
you were selected without any action on your part;
you assign the prize or award to a government unit or tax exempt charitable organization prior to your use of, or receipt of benefits from, the award. You can't claim a charitable tax deduction for the assignment on your tax return.
If you receive merchandise for a prize or award, you must report the fair market value of the prize or award as taxable income on your tax return.
If you refuse to accept a prize or award, do not include it in taxable income on your tax return.
It seems pretty clear. The total ARV is $128,170.54. At my tax rate that would be close to $50,000 in taxes.
Does anyone have any opinions on this? Can anyone afford to win? There is no cash included in the prize, so this would be out of pocket expense. If I won, I'd probably refuse most of the prize (can't sell it since it can't be transfered).
ID, and that there was only one prize per household, apart from if you win the Cryptex and the Grand Prize.
Jeff Blankenburg said...
I actually got two cryptexes in the mail today. One for me, and one for my wife. I figure if we team up, our second try at the content ought to go pretty well.
here's to $40K in taxes!!!
and
H-sizzle said...
Yay! My cryptexes arrived! (I entered twice, with 2 gmail accounts...)
I've posted this to
Wei-Hwa Huang's blog in the hope that he can do something about this cheating, since he was instrumental in the puzzle creation.
Tags:
da vinci code,
quest,
google,
finalist,
cryptex,
taxesLots of links from the official blog