Income Tax Hits to “Winners”

Few folks know much about tax consequences of much of the financially-oriented news they see or hear.

Prize money won in a TV contest by a lucky contestant is taxable as income.

And that free vacation trip or new car gift is probably going to be taxed at the retail value, not at the discount you could have gotten, had you bought it directly.

So, the contestants may be getting non-cash items for cash amounts they may not even possess.

Also be aware: That foreclosed mortgages and any reductions in credit card loans and other loan forgiveness, result in an income tax bite. Amounts saved are considered income. ( See the Earl J Weinreb NewsHole® comments.)