Prize Winners Also Pay Income Tax

Few folks know much about tax consequences of much of the financially-oriented news they see or hear. Example: Money won in a TV contest or any such prizes, is taxable as income.

                       

Furthermore,  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.

                       

Also, the contestants may be getting non-cash items for tax-cash payments they may not 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 and @BusinesNewshole at Twitter.)