# The Dark Side of Game Shows on TV



## JustBonee (Aug 19, 2013)

Have heard many bad things over the years about contestants, and winnings,  on game shows ....  I guess they are true.. ??  I never had a chance to find out first hand.  
Anyone ever experienced this dilemma? 

http://shine.yahoo.com/work-money/price-8230-taxes-high-174700410.html




> According to ABC, one winner even turned down an actual cash prize of $10,000 since he didn't want to split it with his ex-wife.


  :lol:


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## Jillaroo (Aug 19, 2013)

_That's very interesting BM i had never thought about the tax people had to pay on prizes_:hair:


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## SeaBreeze (Aug 19, 2013)

I always knew that people had to pay taxes on their winnings, including cash in lotteries or cars in contests.  I've heard that some people have sold the vehicle to someone they knew for a really cheap price.  That way their friend got a nice car at a steal, and they also made some profit, even though they didn't really take possession of the car.


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## SifuPhil (Aug 19, 2013)

Oprah was/is famous for her giveaways, including the first time she gave 276 brand new cars to her audience ...

For her own tax purposes she declared the cars as "prizes" instead of "gifts". This shifted the tax payments to the recipients. many of whom couldn't come up with the $7,000-odd dollars for the tax man and thus had to sell their cars or turn them down outright.

Oprah's official reply? 

"*And why should I have paid for them* ..."


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## JustBonee (Aug 20, 2013)

SifuPhil said:


> Oprah was/is famous for her giveaways, including the first time she gave 276 brand new cars to her audience ...
> 
> For her own tax purposes she declared the cars as "prizes" instead of "gifts". This shifted the tax payments to the recipients. many of whom couldn't come up with the $7,000-odd dollars for the tax man and thus had to sell their cars or turn them down outright.
> 
> ...



Yeah, people  were laughing, jumping, crying on the show .... then Uncle Sam stepped in, and they really got to cry a river.  *Always a catch!   
*Wonder how many of those poor souls actually got to keep their car in the end.


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## MercyL (Aug 20, 2013)

Boo's Mom said:


> Have heard many bad things over the years about contestants, and winnings,  on game shows ....  I guess they are true.. ??  I never had a chance to find out first hand.
> Anyone ever experienced this dilemma?
> 
> http://shine.yahoo.com/work-money/price-8230-taxes-high-174700410.html
> ...



The hubby and I used to talk about winning big prizes, never knowing our assumptions - that winning a car, vacation home, or any other large item meant selling the prize to cover the new tax burden - were correct!

It seems that cash prizes are actually more valuable than product prizes. The taxes on cash are easier to pay. All you have to do is pay the taxes with part of the prize money, with little or no effort. Of course, there are always people who want to rent the limo and immediately go on a dream vacation, with  my husband being one of them. We have worked out a compromise, in the off chance we win a prize worth more than our mortgage.

My plan is to see an attorney firs,t before picking up the check, and creating a trust. All of the money goes to the trust, first. We celebrate on the interest. Our compromise? See the attorney, create the trust , pick up the check, pay off our mortgage,_* then*_ rent the limo and go to a local resort for 3 days with the balance of prize money going into the trust. 

A product prize, like a house pr vacation package, actually create hardship. The winner must convert the prize into cash, by selling it or renting it out, to cover the new tax liability. The effort this takes sucks the profit margin down to zero, if you are lucky!


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## That Guy (Aug 20, 2013)

As for The Big "O".  Never have liked her and figure she's a sham.  As for game shows . . . what we need is  . . . "Running MAN"...


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