Today's sweepstakes bring big ticket dream items into play. Things that most people will take out a loan to get, if they can ever get them at all. Things that so many people spend time dreaming of!
Still, even winning one of these items doesn't make it cheap. In going through the rules of the second sweeps today, it noted that the winner is required to pay the sales tax.
This wouldn't be bad, except that a person also has to pay income tax on any big winnings. So, this definitely brings the cost of a big win up, and seems to be a double tax, or something. I'm certainly no tax consultant, but it seems rather unusual to me, to see sales tax on an item you have to pay income tax on. I'm having a difficult time wrapping my head around this.
Yet, this being the case, you're looking at sales tax at around 7% in the area that I live, and income tax - at its highest - at about a third of the price (this could be less, depending upon your total income and on how well you can barter the "Fair Market Value" of the prize. Check out this article). So, total taxes paid at the upper end could wind up being around 40% of the Fair Market Value.
At this rate, you could still possibly have to take out that loan to cover these costs, if you didn't have a way to scrape up the cash to pay the taxes. Personally, I prefer debt-free living, so I would likely just sell something else to cover the cost of the taxes on the new item, if I'd need to. Either way, the prize still comes at a greatly reduced cost, as opposed to an outright purchase.
In the end, it may be just the way for someone to make a dream come true!
These are merely my own observations and thoughts on this matter, based upon many years of entering sweepstakes. Someone else may have a differing view of these same things.
What do you think?
NOS Energy Drink ‘Fire Up’ Sweepstakes
* Grand prize is a custom NOS vehicle. ARV $50,000.
* First prize is a two night trip for two to the Seattle, Washington area. Includes air fair, accommodations, a VIP experience with Chris Forsberg either on August 4th or 5th, 2016, two tickets to a Drift Race August 4th or 5th, 2016 in Monroe, Washington, and $200 spending cash. Total ARV $8,000.
* 100 Second prizes, each a NOS Energy Drink hoodie. ARV $40, each.
One entry per person/email address. Open to legal residents of the 48 contiguous United States and D.C., at least 18 and the age of majority. Ends April 30, 2016.
Buck Knives Edge of a Legend Fishing Sweepstakes
* Grand prize #1 is a Dream Boat Prize Package. Includes a G3 Boats Angler V185F Aluminum Boat with trailer & Yamaha SHO 150 outboard motor, and much more. Total ARV not to exceed $63,805.75.
* Grand prize #2 is a Kayak Fishing Package. Includes a Jackson Kayak Coosa HD, 2016, and much more. Total ARV not to exceed 4,242.60.
* Grand prize #3 is a Backyard BBW prize package. Includes a Bradley Smoker Smoker, a Bradley Smoker Grill, and much more. Total ARV not to exceed $2,217.94.
* Each month has a new instant win bonus prize. The prize for March includes Lew's merchandise items, Buck Knives Clearwater Fillet Knife Set (0027RDS & 0023RDS), and Astral Porter Shoes. Total ARV $565.86.
One sweepstakes entry per person/email address via Website entry, and one entry per person/email address via Facebook Entry. See rules for mail-in entry, by which you may enter once daily. You may play the instant win game daily, which automatically gives you an additional entry for the Grand Prize drawing, each time you play. Open to legal residents of the 50 United States, D.C, and Canada (excluding Quebec), 18 or older. Ends June 30, 2016.
Today's Bonus
Open to AL, CT, DE, GA, IL, IN, KY, MA, MI, NC, NH, NJ, OH, PA, SC, TN, VA, WI, and WV. This game requires a code, which you can get with a purchase at Speedway, or by mail. Prize is a Limited Edition Rockstar/Attitude Toyhauler. ARV $50,000. Weekly prizes also available. Ends March 30th.
The Rockstar and Speedway Revolt Grand Prize Sweepstakes
Good Luck!
