Last Minute Travel Winners-guess what came today

[clj1410]

Guess what i just got in the mail today! My 1099 misc came, for a minute i got all excited as it seemed like every box had zero's in it! Then i saw in box 3 the amount of my "free trip" 7 nights at Coronado Springs was valued at$1093.03, exactly what they told me it would be.

I am off to plug it in to my taxes and see what i have to pay in taxes on it, not that it matters, because we had a great time and it was worth all those late nights..........

 

[CherylA]

Oh good I'm glad you got yours, I was wondering if they were going to send it! Mine was 5 nights at Coronado. I want to get my taxes done this week. Curious too as how it effects my taxes, it wasn't very worth it to me because our dates were during free dining so I missed out on free dining to get the room The room rate was available for a lot less than they assign for the tax value. I printed out the reduced rates and plan to send them along to my accountant to file for the lesser amount I hope.

 

[kidrericha]

Excuse me... I don't follow. What are you talking about?

 

[dogodisney]

Excuse me... I don't follow. What are you talking about?

Last year around this time, Last Minute Travel ran a contest. Well many of us DISsers were involved in it. Some won trips others of us didn't.
Anyway the ones that "won" their free trips are now having to file the value of the trips with the IRS so they can pay the taxes on the value of said trips.

 

[glitzybabes]

I got mine today also for the same amount. I had 7 nights at CBR in a perferred room. I wish that they would run the promo again.

 

[Green Tea]

Have not gotten mine yet. Was holding off on the tax submission to see if they sent it. Guess it is in the mail.

 

[ctinct]

Just a head's up regarding taxes. I used to do sweepstakes and won a few trips over the years. The sponsoring companies would always send a 1099 for the highest value of things, because that way they could deduct them from their bottom line. If, however, you can document that the same thing you received was available for less money, you can claim that rather than the higher amount. For example, they will always value the hotel at rack rate. Who the heck pays rack rate?

 

[auralia]

generally when it is a prize the prize tax is 50% of the value... a 2000$ vacation will be a tax of 1000$ as i understand it... but if you can prove that 2000 vacation was actually worth 1500$ whell then the tax would of course be 750$

 

[kytiam]

generally when it is a prize the prize tax is 50% of the value... a 2000$ vacation will be a tax of 1000$ as i understand it... but if you can prove that 2000 vacation was actually worth 1500$ whell then the tax would of course be 750$

Prize tax is 50% of the value?!?!I had NO idea!! Guess winning isn't that great after all!

 

[jenseib]

Let us know if they run this again! It would be the only way we could go this year.

 

[annsteere]

Just a head's up regarding taxes. I used to do sweepstakes and won a few trips over the years. The sponsoring companies would always send a 1099 for the highest value of things, because that way they could deduct them from their bottom line. If, however, you can document that the same thing you received was available for less money, you can claim that rather than the higher amount. For example, they will always value the hotel at rack rate. Who the heck pays rack rate?

You can try it, but that won't always work. I won a trip to Disney. It included airfare for four and DS lives in Naples,FL so he drove to meet us. Airfare was selling for just under $200 on American, United, Delta, etc. but the prize package claimed the value of airfare was $1800 (4 @ $450). I printed out airfare for all those companies, including the airline we actually flew on. The value of the room was full rack rate. Value of the room was also full price.

I filed taxes saying we received full rack rate for the room, full rack rate for the park tickets, and $600 for our airfare.

The IRS disputed it.

I sent them the copies of the posted airfares the day we received the prize notification and the day we actually flew. I lost. They said the airline had declared the value of $1800 and deducted it and that is what I had to pay taxes on.

Winning is nice. But taxes should make you think before you claim any prize that you don't really want.

 

[LisaNJ25]

Let us know if they run this again! It would be the only way we could go this year.

That contest made many of us insane and sleepless

 

[Disney Ella]

You can try it, but that won't always work. I won a trip to Disney. It included airfare for four and DS lives in Naples,FL so he drove to meet us. Airfare was selling for just under $200 on American, United, Delta, etc. but the prize package claimed the value of airfare was $1800 (4 @ $450). I printed out airfare for all those companies, including the airline we actually flew on. The value of the room was full rack rate. Value of the room was also full price.

I filed taxes saying we received full rack rate for the room, full rack rate for the park tickets, and $600 for our airfare.

The IRS disputed it.

I sent them the copies of the posted airfares the day we received the prize notification and the day we actually flew. I lost. They said the airline had declared the value of $1800 and deducted it and that is what I had to pay taxes on.

Winning is nice. But taxes should make you think before you claim any prize that you don't really want.

I read the same thing on one of the sweepstakes boards. Sure, you can take the chance that the IRS won't notice it and put the lower amount on the tax form, but if the IRS flags it, you will end up paying tax on the reported amount, not the cheapest amount you could have paid if you arranged the trip yourself.

 

[jenseib]

That contest made many of us insane and sleepless

LOL! Thats me normally!

 

[pilesoflaundry]

Even with taxes I'm sure some of those trips were still a savings :

 

[dogodisney]

That contest made many of us insane and sleepless

YUP! I was one of them.

 

[Green Tea]

Even with taxes I'm sure some of those trips were still a savings :

All of them were! It is always cheaper to pay 25,28, 35% of the price instead of 100%.

 

[simonsmom]

That contest made many of us insane and sleepless

insane being the key word!

 

[Green Tea]

Still did not receive mine today. I suspect it didn't meet the threshold required for reporting.

 

[C-CMom]

Prize tax is 50% of the value?!?!I had NO idea!! Guess winning isn't that great after all!

Maybe, but maybe not. My understanding is that the prize value is added to your ordinary income. The actual rate would then be determined by whatever tax bracket in which the individual falls.

Not as good a "free", but still could be a nice problem to have if you get a trip at a fraction of the usual cost.