Oprah car winners hit with hefty tax


S

SLT

Active Member
Like any prize, the value is counted as income; winners must pay up to $7,000 or forfeit the car.


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.

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



The Harpo Spokeswomen said winners had three choices. They could keep the car and pay the tax, sell the car and pay the tax with the profits or forfeit the car. :smh:
 
Fortitude said:
The Harpo Spokeswomen said winners had three choices. They could keep the car and pay the tax, sell the car and pay the tax with the profits or forfeit the car. :smh:
Click to expand...

That's not gonna go over well.
 
I told you it was a business move on behalf of GM and Harpo for ratings. Everything that looks good is not good for you.
 
I'm sure a lot of cars will be sold or returned. Those people probably don't have $7,000 laying around.
 
They don't have to pay the money now. The value of these cars will be treated as INCOME, to which they won't have to deal with until sometime between Jan and Apr of 2005. Secondly, these people probably fall into a low tax bracket (15%) and after its all said and done, they probably won't be paying but a little.

I think those numbers were based on someone being in a high tax bracket. Uncle Sam will come calling, but its not like he was outside the studio leaning against the car waiting to collect the taxes before they could drive off.
 
Now didn't ya'll say that the initial purpose of this show was to bring in folks who needed a car and she was giving them one? And the other folks in the audience got one by default? Now if I'm riding around in a hooptie (which I am) then more than likely I don't have any extra money (which I don't) to be paying tax on a car. Now I can see the "well it's more than you had before" side of it as well, but if you're goning to give me something I didn't ask for at least GIVE it to me.

Now what was the point of this show again?? :confused:
 
Da_Sperm said:
They don't have to pay the money now. The value of these cars will be treated as INCOME, to which they won't have to deal with until sometime between Jan and Apr of 2005. Secondly, these people probably fall into a low tax bracket (15%) and after its all said and done, they probably won't be paying but a little.

I think those numbers were based on someone being in a high tax bracket. Uncle Sam will come calling, but its not like he was outside the studio leaning against the car waiting to collect the taxes before they could drive off.
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If that's the case, just add the info to the tax info and go from there. :tup:
 
Bengal E said:
Now what was the point of this show again?? :confused:
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The point of this show was for GM to place their new product on television. The cost of giving away 276 cars worth $28,000 on Oprah was pennies compared to the marketing hype that it created. Neither GM nor Oprah really GAF about these people paying income on these cars.

Uncle Sam is a MF. He collects everytime everywhere.

If it were me, I'll take that $28,000 car and sell it for $20K and go buy me a $5K hoopie and pocket $15K.
 
Seeing how they are getting a $28,000 for $7,000...I say that's a pretty good deal anywhich way you look at it. Heck, they were gonna get a loan to buy one anyway, so get a loan and pay off the doggone taxes and hersh!

Ungratefulness runs deep in our society
 
chocalate_topaz said:
Seeing how they are getting a $28,000 for $7,000...I say that's a pretty good deal anywhich way you look at it. Heck, they were gonna get a loan to buy one anyway, so get a loan and pay off the doggone taxes and hersh!

Ungratefulness runs deep in our society
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That's what I was about to say...can't they finance the taxes? Maybe I'm wrong, but I thought they could.

Sperm, help me out here?
 
SLT said:
Like any prize, the value is counted as income; winners must pay up to $7,000 or forfeit the car.


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.

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

Damn...can Oprah pat the taxes?
 
That's a bad deal....you can't get $28K for those cars today. Couldn't GM have sold the cars to them for a $1 to eliminate the gift factor?
 
chocalate_topaz said:
Seeing how they are getting a $28,000 for $7,000...I say that's a pretty good deal anywhich way you look at it. Heck, they were gonna get a loan to buy one anyway, so get a loan and pay off the doggone taxes and hersh!

Ungratefulness runs deep in our society
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Most of the people on that show had minimum wage jobs. $6.00 an hour only goes so far. Everyone is not fortunate. The rich always uses the poor to get ahead. The way of the business world is, Build it and the poor will come. Sad, but true. They are not being ungrateful, just shocked.
 



Well, if any of you all know somebody who got a car and is so mad about the $7000, tell them to call me at 601.384.0219. I'll pay them $7000 for the car then they can pay the taxes since the car is in their name and the taxes are gonna be on them and they'll be right back where they were at first---> Nobody owning nobody nothing and they don't have nothing. :bawling:

Otherwise, they should either:
1. find the money
2. start a company and deduct start up costs like heck or
3. hersh
 
Da_Sperm said:
They don't have to pay the money now. The value of these cars will be treated as INCOME, to which they won't have to deal with until sometime between Jan and Apr of 2005. Secondly, these people probably fall into a low tax bracket (15%) and after its all said and done, they probably won't be paying but a little.

I think those numbers were based on someone being in a high tax bracket. Uncle Sam will come calling, but its not like he was outside the studio leaning against the car waiting to collect the taxes before they could drive off.
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I agree. However, the article I read on Yahoo! when the story broke stated that GM would pick up the taxes. That must have been a misprint. However, consider going from NO car to a $28,000 car that only cost you $7000. I'd take it. Lower income brack or no income at all will probably work itself out.
 
O.K. Here's my unpopular opinion . . .

I think if they want the car they should pay the Taxes and if they don't want the car either sell it or forfiet the car.

So many times people get an opportunity and they can't see the forest for the trees. It still a gift that they all should be grateful for. Remember, there ISN'T anything that is free! Someone pays, always. And even if they choose to give it to you, you should be willing to do your part or make choices based on your need, yet still be appreciative.

If they are that dayam poor, why the "L" are they sitting up at Oprah's show instead of out trying to find a work to make their life better? (which some people can't handle what they got, less and alone have something better)

I understand that everyone isn't in the position to pay the taxes, yet they still should be thankful for the opportunity. It reminds me of the saying . . .Don't ask for something you can't handle, because it comes with it own set of problems and choices. :vomit:
 
chocalate_topaz said:
Seeing how they are getting a $28,000 for $7,000...I say that's a pretty good deal anywhich way you look at it. Heck, they were gonna get a loan to buy one anyway, so get a loan and pay off the doggone taxes and hersh!

Ungratefulness runs deep in our society
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The car ain't worth $28K anymore...it's more like $18K....now this is not including the deal that Oprah struck to purchase that many cars. Also, I wonder how some of these people feel now. If you give someone something, insure that they do not have to pay any else.
 
Dr. Sweet NUPE said:
The car ain't worth $28K anymore...it's more like $18K....now this is not including the deal that Oprah struck to purchase that many cars. Also, I wonder how some of these people feel now. If you give someone something, insure that they do not have to pay any else.
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Oprah did not purchase the cars. GM donated them.

An advertisement ploy.
 
J4J said:
I agree. However, the article I read on Yahoo! when the story broke stated that GM would pick up the taxes. That must have been a misprint. However, consider going from NO car to a $28,000 car that only cost you $7000. I'd take it. Lower income brack or no income at all will probably work itself out.
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Oprah paid the sales tax, title and license on the car. Oprah cannot pay the income taxes, because even if she gave them an extra $7000, Uncle Sam would be coming to tax that extra money. You can't get around his old arse.

DSN...that car is still worth at least $24K right now.
 
jag4life said:
Oprah paid the sales tax, title and license on the car. Oprah cannot pay the income taxes, because even if she gave them an extra $7000, Uncle Sam would be coming to tax that extra money. You can't get around his old arse.
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The cars, priced at $28,400 fully loaded, were donated by Pontiac, according to the carmaker. Pontiac, a division of General Motors (GM: Research, Estimates), has also agreed to pay sales tax for each member of the lucky audience.
 
SLT said:
The cars, priced at $28,400 fully loaded, were donated by Pontiac, according to the carmaker. Pontiac, a division of General Motors (GM: Research, Estimates), has also agreed to pay sales tax for each member of the lucky audience.
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Exactly...sales tax.
 
opens mouth...

Ohhh nevermind. I ain't gonna get into this too deep.

But I don't think any of the recipients are ungrateful. That's just us talking. I have read where they are complaining...yet.
 
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