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deelytful1
January 29th, 2006, 2:25pm
I was just thinking about the sweep for the 2.1 million dollar home and property. Does anyone know how the sponsors get to such a number? I know they want the ARV to be as high as possible for the deduction, but is it fair?
I mean, you'll be paying taxes on 2.1 million but you may only be able to sell the prize for only 1 million (pure speculation to make a point)
What do YOU think (or know)
Thanks!!

http://i47.photobucket.com/albums/f159/deelytful1/tappingheadthinking.gif

Markslady
January 29th, 2006, 2:29pm
Once you've been doing this for a while you'll see that alot of ARVs are way over-inflated. The best advice is to make copies of what you can find on the internet for the same thing and take them with your 1099s to your tax person and/or sponsor if you can get to them before they send out your 1099. In the case of homes, jewelry, etc... get a written appraisal.

deelytful1
January 29th, 2006, 2:42pm
So if I win the house for 2.1 million (or any LARGE prize) I should get an immediate appraisal and/ or estimate and bring it to the sponsor's attention?

Markslady
January 29th, 2006, 2:51pm
Oh yes, most definately. But don't assume they'll listen to you, some will and some won't. :rolleyes:

deelytful1
January 29th, 2006, 2:54pm
That's why I love cold hard cash. The ARV is the ARV!!! :laugh:
Thank you for your help. Might save me thousands (see how positive I am? :gvibes: )
http://i47.photobucket.com/albums/f159/deelytful1/hysterical.gif

susan1215
January 29th, 2006, 3:03pm
The values of prizes are based on manufactured suggested prices not what you would pay in the store. Trips are the most overinflated from what I have seen, which is one of the reasons I rarely enter them. I know people have written that they keep track of the actually costs and send those into the IRS but I have also heard of the IRS rejecting those receipts and just going with the 1099 form anyway. I would hate to be audited over a trip win.

Star2Nite
January 29th, 2006, 4:22pm
NOOOO. I have found out from my big win that for instance my massage chair is stated having a value of $2500, but all over the internet it is $1499.99. I have another item that I won they value at $707.00, but again on the internet only valued at $299.00.

I am trying to figure out what the IRS will accept for values otherwise I will end up paying a whole lot more then is fair.

Elizabeth


P.S. any ideas :gvibes:

maliasmommy
January 29th, 2006, 4:54pm
This thread may help you in figuring the arvs.
http://www.online-sweepstakes.com/forums/showthread.php?t=326442

webwalking1
January 29th, 2006, 5:11pm
For that HGTV sweep from the rules...
The home is valued at approximately $1,750,000 (includes structure, lot, and landscaping) as of November 1, 2005
The home furnishings and merchandise consist of: furniture (Approximate Retail Value (“ARV”): $90,000), accessories (ARV: $40,000) and a pool table (ARV: $8,000) (Total ARV of furniture and accessories: $138,000); a 2007 GMC Yukon (ARV: $55,000); and a Doggy Dream Home (ARV: $1,450). The $250,000 cash prize will be furnished by LendingTree.com.
Total ARV of Grand Prize is $2,194,450.
But yes I still see tha most sweeps have inflated ARVs. I won a trip to LA and still don't see where it is going to come out over $4000.

mdnblaster
January 29th, 2006, 6:31pm
I wonder if the people that have the sweepstakes are then doing a bit of an IRS swindle.

If the prize is given to them from a sponsor then they can use any number up to the MSRP, the higher the better, for their own tax purposes. I dunno.

Now if the sweepstakes runner MAKES the item to be given away then would'nt the value be at COST? :halo:

The latest travel prize I won was at the actual cost. The IRS form I was sent was actually less than the ARV they listed originally. That was a nice surprise.

bigskwinner
January 29th, 2006, 6:39pm
i think the whole system you guys have where you have to pay taxes is just nuts
but hey i guess that means i have more of an opportunity to win the prizes if less americans enter cus they cant pay the taxes

Miki
January 29th, 2006, 6:46pm
I wish ARV's were more fair. I had a win last year that is over inflated but, will pay taxes on it of course regardless.

noey718
January 29th, 2006, 6:50pm
So if I win the house for 2.1 million (or any LARGE prize) I should get an immediate appraisal and/ or estimate and bring it to the sponsor's attention?


Did you win? :)

patti31556
January 30th, 2006, 5:38pm
Did you win? :)

No she thinks she's going to win MY DREAM HOME!! :cool2:

wackydackydoo
January 30th, 2006, 7:04pm
ARV's are usually over-inflated at the time the sweepstakes runs is because the sponsor themselves don't know how much they will actually be paying out when the prize is awarded, especially on trips. So, they are listing an ARV for the "worst case scenerio".

Bottom line, you only pay taxes on the amount the sponsor actually paid out.

cman
January 30th, 2006, 8:00pm
I won trip to Disney, arv 2200. Today I got my l099 for l451, which must have been just what they paid, So all trip's aren't overvalued, disney was great.

deelytful1
January 30th, 2006, 8:36pm
Thanks everyone. Now I'm thoroughly confused!! :frown2:
Not really, I just figure WHEN I win my $2.1M dream home, I'll need to know these things!

http://i47.photobucket.com/albums/f159/deelytful1/thnana.gif

:rofl3:

tofu
January 30th, 2006, 9:19pm
Some companies overvalue, others don't. So far mine have been pretty close to accurate, though I know my trip win cost less the sponsor than the ARV value (unless they throw in some extras I don't know about).

I haven't got the 1099 yet, but from other people's experiences, it sounds like they will probably adjust it to the correct value (it's from ePrize).

KRSchulze
January 30th, 2006, 9:30pm
The values of prizes are based on manufactured suggested prices not what you would pay in the store. Trips are the most overinflated from what I have seen, which is one of the reasons I rarely enter them. I know people have written that they keep track of the actually costs and send those into the IRS but I have also heard of the IRS rejecting those receipts and just going with the 1099 form anyway. I would hate to be audited over a trip win.

Well said. This is why I am very picky about which sweeps I enter, too.

dondevinesr
January 30th, 2006, 9:33pm
thanks, for all the info i'll be able to use when i win.

autonomous
January 30th, 2006, 9:48pm
mdnblaster I wonder if the people that have the sweepstakes are then doing a bit of an IRS swindle.

You betcha! :cheer2: :shock: :wink4: