Didn't win a car from Oprah? Cheer up! (Winners pay extra $7,000 in taxes)

[UrbScotty]

http://money.cnn.com/2004/09/22/news/newsmakers/oprah_car_tax/index.htm?cnn=yes

NEW YORK (CNN/Money) - Leave it to Uncle Sam to spoil the party.

When Oprah Winfrey gave away 276 cars last week to the audience of her show, images of people laughing, jumping, crying -- some hysterically -- filled the airwaves and the give-away became stuff of legend. Late night talk show hosts and newspaper columnists are still talking about it.

But now some of those eager prize-winners have a choice: Fork over $7,000 or give up the car.

According to a spokeswomen for Harpo Productions Inc., Oprah's company, the recipients must pay a tax on the winnings, just like any prize.

[da_chimperor]

1. That's awful!

Why couldn't they classify the cars as gifts instead of prizes?

[whistle]

2. That's the federal gift taxes, there are also state ....

...taxes for some people. Now let's see. The cars are valued by the IRS at full sticker retail of $28,000.00 and the gift tax is $7,000.00 or 25%. Does anyone ever pay full sticker price on a new automobile of that type? What if people can show that the typical year-end discount is $5,000 or $6,000? Would that be considered by the IRS? Just curious.

[BlackVelvetElvis]

3. They need to trade their new cars in for an H2.

Maybe they could get a tax break.

[AndyP]

4. hey I think those G-sixes kick ass

I would pay 7 grand for one!

[Deja Q]

5. So Oprah spent $7,728,000?! How many Big Macs would that buy?

I'd fork the $7k, though $7.8 million would feed an awful lot of people for a while.

</bland moralizing>

[greatauntoftriplets]

8. Pontiac actually paid for the cars.

It was all a publicity stunt and Pontiac enlisted Oprah's help.

[YellowRubberDuckie]

6. I think that getting a $34,000 car for $7000 is a deal.

Quit bitchin'. If you can't pay for it, don't take it.
Duckie

[Bluebear]

7. $7000. X 276 = Halliburton Iraq bill for 5 minutes