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Gomez
September 9th, 2003, 11:08am
Looking at this sweep (http://soapnet.go.com/sweeps/dallas/index.html) I had a theory. The prize on this is a trip for 25 to dallas to Southfork Ranch and a BBQ dinner,ARV $30,000 which would be thousands of dollars in tax liability for the winner. No cash equivalent or substitution allowed.

My theory was that the company running the sweep at least had to consider that many people who won would notafford the taxes and likely decline the prize. I wonder if this was partly their intention, namely to offer a prize they hoped would be declined so they could save money?

sherlock
September 9th, 2003, 11:23am
I would say "yes" in the many sweepstakes where the ARV of a prize (especially the grand prize) is wildly overstated. Paying taxes on that amount is almost like buying the item.

DjDale
September 9th, 2003, 11:34am
If I read the rules right, they are flying all the 24 guests in too? With all of them staying at the ranch as well, I think $32,000 is a fair estimate.

If you don't want to pay the taxes then DON'T ENTER! Why do people, in knowing they can't afford the taxes enter a sweep anyway, only to have to turn it down? That wastes the promoter's time.

PEOPLE ... only enter the sweeps you can afford to pay the taxes on. Otherwise let someone else win....

DjDale

wolflady26
September 9th, 2003, 11:40am
I think it would be pretty easy to split up the taxes among 25 people.

sherlock
September 9th, 2003, 11:45am
EZ? Are you joking? For one thing, that would require the winner telling (and maybe even proving) what tax bracket he/she is in.

Hope
September 9th, 2003, 11:45am
Wonder if you you request that (4) people go instead of (25)?

Gomez
September 9th, 2003, 11:55am
Originally posted by sherlock
EZ? Are you joking? For one thing, that would require the winner telling (and maybe even proving) what tax bracket he/she is in.

Considering that you'd be inviting freinds and family ... you don't have to prove or say anything. Just say "hey, I won this cool trip and want to invite you but need some help with the taxes on the prize, would you please pitch in $200 for taxes since this is gonna costa small fortune?"

Anyone who would demand to see documentation and want to know my tax bracket is not someone I'd be inviting, duh!

sweepyhead
September 9th, 2003, 12:05pm
If a winner declines the prize because of the taxes, wouldn't the judging agency simply pick a different winner? I doubt they're trying to keep from awarding a prize. This is a big outfit that can afford it.

I'm not interested in the prize, so I didn't enter. Same with another sweepstakes they held earlier: a trip for two to Los Angeles on a private jet, ARV about $20,000. No thanks.

Sweepy:sleep2:

JOYWIND
September 9th, 2003, 12:13pm
Originally posted by accordinated2001
Wonder if you you request that (4) people go instead of (25)?

That's a very good point. I wouldn't imagine you must have the maximum 25 people attend. If you want a smaller, more intimate gathering, I don't see why that wouldn't be considered by the sponsor and then the 1099 adjusted accordingly.

I think the sweeps that offer an "exclusive" showing of a particular movie for 99 of your closest friends are laughable. Unless you have money to burn on such a frivolous activity, I can't phathom inviting a ton of guests to a premiere and then saying BTW I'll need you to pitch in $50 for you and your guest. I'm sure that wouldn't earn me any awards for hostess of the year. :laugh:

Blueyes4444
September 10th, 2003, 2:44pm
Originally posted by DjDale
If I read the rules right, they are flying all the 24 guests in too? With all of them staying at the ranch as well, I think $32,000 is a fair estimate.

If you don't want to pay the taxes then DON'T ENTER! Why do people, in knowing they can't afford the taxes enter a sweep anyway, only to have to turn it down? That wastes the promoter's time.

PEOPLE ... only enter the sweeps you can afford to pay the taxes on. Otherwise let someone else win....

DjDale

If I won a huge trip like this I wouldn't be able to afford the taxes. If the contest was ONLY for this trip then no, I would not have entered it but if it had other smaller prizes then I would have. I've found that alot of people enter contests for the smaller first and second place prizes and not so much for the huge expensive trips. Just thought I'd put my 2 cents in......

yadgirl
September 10th, 2003, 2:50pm
Originally posted by sweepyhead
If a winner declines the prize because of the taxes, wouldn't the judging agency simply pick a different winner? Sweepy:sleep2:

Yes, absolutely unless the rules stated that in the event the winner forfeits the prize, an alternate will not be drawn.

I think most sponsors want the first person they contact to claim the prize... it makes it easier for them.

yad

scrapnjan
September 10th, 2003, 8:31pm
Blueyes4444 made a good point. I've often entered sweeps for the smaller 1st and 2nd prizes, actually hoping that I don't win the grand prize.

Janice