General Discussion

Ms. Toad

(34,066 posts)

59. It's actually not.

Sat Sep 14, 2019, 07:50 PM

Sep 2019

The recipient is never required to pay taxes on a gift. It is the donor who potentially has to pay taxes - not the recipient.

Who pays the gift tax?
The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement.

https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes#1

So this story (if it truly was a gift) makes no sense at all.

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72 replies

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Highlight:

That Time Oprah Gave 276 People 'Free' Cars That Actually Cost Them $6,000 In Taxes [View all] Yo_Mama_Been_Loggin Sep 2019 OP

I mean worst case qazplm135 Sep 2019 #1

Agreed Sherman A1 Sep 2019 #3

More of the story: StarfishSaver Sep 2019 #4

doesn't change my point qazplm135 Sep 2019 #12

I wasn't disagreeing with you StarfishSaver Sep 2019 #15

+1,000 n/t malaise Sep 2019 #38

Exactly MaryMagdaline Sep 2019 #66

Could almost make one refuse the gift. Almost. Sneederbunk Sep 2019 #2

I'd gladly pay 6k to save 25k. dem4decades Sep 2019 #5

If you have it... Wounded Bear Sep 2019 #6

You have a 20k asset that you didn't have. you can cash it out and make a 14k profit. For sitting dem4decades Sep 2019 #7

you do have it qazplm135 Sep 2019 #13

me too Demovictory9 Sep 2019 #45

If the taxes were a problem, sell the car, pay the taxes, and pocket around $15,000. Hoyt Sep 2019 #8

Absolutely man...some people see the glass as half empty, vs. half full. $6000 for a new car ... SWBTATTReg Sep 2019 #9

And if you can't afford that much in taxes, presumably you can sell the car for more than $6,000. LisaL Sep 2019 #20

All game shows have the same deal. Cartoonist Sep 2019 #10

Damned straight. A HERETIC I AM Sep 2019 #24

So if lucky me doesn't win anything at least I don't have to pay taxes on it. LisaL Sep 2019 #27

That's right!! A HERETIC I AM Sep 2019 #37

If you don't win, you've lost, right???? dixiegrrrrl Sep 2019 #68

Aunt Bee ran into that problem on the old Andy Griffith show. Gidney N Cloyd Sep 2019 #48

What is more fun than having a piss on a silver lining? Democratic Debates IADEMO2004 Sep 2019 #11

It Must Be a Slow News Week Over at MSN. This is What I Call a Click Bait Story. Indykatie Sep 2019 #14

Your friend did the right thing. A HERETIC I AM Sep 2019 #25

I bought a new car once when I was young and foolish. I'll never do that again. hunter Sep 2019 #16

what's wrong with a new car? Skittles Sep 2019 #36

My new car, which I bought before our children were born... hunter Sep 2019 #46

GA man wins $10 million lottery, costs hims $3.1 million! Cattledog Sep 2019 #17

Yea, exactly. The story is absurd. If somebody gifts you something expensive, over a certain amount, LisaL Sep 2019 #22

Couldn't they have just opted for cash value? nuxvomica Sep 2019 #18

Yes zipplewrath Sep 2019 #54

That's true of all gifts, though. LisaL Sep 2019 #19

It's actually not. Ms. Toad Sep 2019 #59

Those are absolutely intended consequences. LisaL Sep 2019 #21

Usually the giver pays the taxes, in my expiernce. Oprah had that option. n/t pnwmom Sep 2019 #23

I had a friend with a similar situation. They won something at a fair and then found out they had to LisaL Sep 2019 #26

The fair could have paid the tax and so could Oprah. That is the usual thing. pnwmom Sep 2019 #29

The cars were considered prizes, not gifts. LisaL Sep 2019 #39

Okay, that's the legal excuse. But nothing prevented Oprah from making the tax payments herself, pnwmom Sep 2019 #49

You don't look a gift horse in the mouth. LisaL Sep 2019 #52

If you win something it is not a gift. Ms. Toad Sep 2019 #60

I'm no accountant but isn't there a circular problem there? defacto7 Sep 2019 #31

Increasinng income to cover the anticipated taxes is pretty common. Ms. Toad Sep 2019 #61

That's not how taxes work moose65 Sep 2019 #67

That was a serious oversight sarisataka Sep 2019 #28

The knowledge of taxes on prizes has been around since TV defacto7 Sep 2019 #34

It's not a problem. You win stuff you pay taxes. unblock Sep 2019 #44

Take a tip from Aunt Bee aeromanKC Sep 2019 #30

I'd still rather have been one of the 11 people that got a car. Captain Stern Sep 2019 #32

Everybody in the audience got the car, not just 11 people. LisaL Sep 2019 #40

Then, I wish I'd been in the audience. n/t Captain Stern Sep 2019 #72

Sell the car and take the cash. GeorgeGist Sep 2019 #33

Exactly. LisaL Sep 2019 #41

I think when the show was over the producer should have told them, defacto7 Sep 2019 #35

$28K new car for $6K? I'll take ten, please and thank you. TeamPooka Sep 2019 #42

Oh ffs. You get stuff you pay taxes. I'm sick of people complaining about taxes unblock Sep 2019 #43

Really, it's tax law 101. Initech Sep 2019 #57

Unfortunately, you just failed tax law 101 Ms. Toad Sep 2019 #62

I think I fell asleep during that part of the lecture. I'll show myself out. Initech Sep 2019 #69

It's a very, very, very common mistake. Ms. Toad Sep 2019 #71

Yeah, people forget about the taxes owed on stuff they win or are given. elocs Sep 2019 #47

I knew one of the contestants on Project Runway, season 3... GReedDiamond Sep 2019 #50

This message was self-deleted by its author Chin music Sep 2019 #51

Like a lot in life, it's just math nt VarryOn Sep 2019 #53

I was under the impression General Motors gave those cars away blueinredohio Sep 2019 #55

That's why I only took the "free"conference fees nitpicker Sep 2019 #56

This is easily one of the most petty, ridiculous things to complain about. cbdo2007 Sep 2019 #58

+1 obamanut2012 Sep 2019 #63

Hey if they don't want it, I'll take it! Initech Sep 2019 #70

Gifts like that need to be tax protected to the reciever. Blue_true Sep 2019 #64

Put the car up for collateral for a loan Ilsa Sep 2019 #65