Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

I won a new car in a raffle. Now I got a 1099MISC reporting…

I won a new...

I won a new car in a raffle. Now I got a 1099MISC reporting a value of $54K as a Nonemployee compensation. Also I had to pay the taxes to get the car out of the dealer ($5400). After that I sold back to the dealer at $45. How I included this on my taxers?

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

That's all I need to know for now.

Show More
Show Less
Ask Your Own Tax Question
Answered in 6 minutes by:
3/7/2018
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,141
Experience: Taxes, Immigration, Labor Relations
Verified

The value of the car you won is correctly reported on form 1099misc.

However - that value should be reported in box 3 as Other income - and not in box 7 - unless that is your business activity.

I suggest to communicate with the sender and ask for correction.

On your tax return - report that amount on form 1040 line 21.

When you sold the car back to the dealer - - that sale transaction is reported on form 8949 - and you will realize a capital loss.

Regarding taxes you paid - we need to verify if these are income tax ? if year - that amount is reported on 1099misc and credited toward your tax liability.

If these are sales tax - you might be able to deduct on schedule A if you itemize.

Let me know if you need any help with reporting.

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,141
Experience: Taxes, Immigration, Labor Relations
Verified
Lev and 87 other Tax Specialists are ready to help you
Ask your own question now
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,141
33,141 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I have a question about winning a raffle, I was just
I was just notified that I won $50,000 in a raffle yesterday, but haventhe option of a car. The car is valued at 46,000. I won the raffle in Colorado but I live in Oregon. If I choose the car, they want 25% of the value of the car upfront, so they can then turn it over to the irs. What is the percentage of taxes that will be taken out if I choose the money … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,465 satisfied customers
I have a question about taxation on bonuses. Or maybe it's a
Hi, I have a question about taxation on bonuses. Or maybe it's a question about gifts given as an incentive, if there is such a thing. Here's the scenario: I have a contractor working on a demolition … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I live in Arkansas and file my taxes here. My question: I
I live in Arkansas and file my taxes here. My question: I won at Bingo at the Lion's Club in Hollister, Missouri, I have to pay taxes on the money I won, do I fill out Missouri tax papers or Arkansas … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I am in the process of negotiating a separation and release
Hello,I am in the process of negotiating a separation and release agreement with my former employer. The agreement indicates that a 1099 misc. will be provided, however it does not state mental distre… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
My wife and i will be filing jointly. Our daughter won 1500
hi, my wife and i will be filing jointly. Our daughter won 1500 prize money at a piano competition last year when she was 15. now she is 16 by the end of the year 2015. does she have to pay taxes on t… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I won a car in a raffle. They claim they sent in a 1099
I won a car in a raffle. They claim they sent in a 1099 stating the car is worth 9.000 dollars the IRS. The blue book valve is 4700 I have tried to sell the car for 4 months now. The highest bidder is… read more
Tax.appeal.168
Tax.appeal.168
Principal
13 satisfied customers
I won a Raffle vehicle in. Do I need to pay taxes when I
I won a Raffle for a vehicle in Virginia. Do I need to pay taxes when I take possession of the vehicle or do I just get a 1099 to file?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
. I won a car from a non-profit that said the car was worth
Hi. I won a car from a non-profit that said the car was worth $17,000. The paperwork from the car dealer says that the cash price of the car was 11,000. I didn't need the car, so I sold it back to the… read more
Lane
Lane
JD, MBA, CFP, CRPS
Doctoral Degree
47 satisfied customers
I traded a car into a dealership in May knowing I would be
I traded a car into a dealership in May knowing I would be buying a vehicle from them in October. I wanted to benefit from the tax credit on the amount I traded in. I owed $54k on my vehicle, I traded… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,141 satisfied customers
Part of the compensation to an attorney was options under a
Part of the compensation to an attorney was options under a non qualified plan that were granted at 21 cents. three days after a new value was obtained, 46 cents, the attorney exercised the options (1… read more
Anne
Anne
Master Tax Preparer
2,345 satisfied customers
My son-in-law won a boat in a fishing tournament, listed at
My son-in-law won a boat in a fishing tournament, listed at $35,000. The tournament folks said he would owe about $7,000 in income taxes. If he sells the boat for $23,000, can he claim the difference … read more
douglasgreenberg
douglasgreenberg
2 satisfied customers
I won a 1978 Corvette in a raffle. I was told to get proof
I won a 1978 Corvette in a raffle. I was told to get proof of fair market value from two different places, so they could send me a 1099 which I did. One was $4,500.00 and the other $4,000.00. I still … read more
Wendy Reed
Wendy Reed
Master Tax Advisor Enrolled Agent
Master\u0027s Degree
3,197 satisfied customers
In Oct/2008 I received a monetary settlement ($10,000) from
In Oct/2008 I received a monetary settlement ($10,000) from my employer for hostile work environment/age discrimination suit. My tax person said my employer misfiled this amount on 1099 form as "nonem… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,141 satisfied customers
My wife and I won a car from the Shriners in South Carolina
My wife and I won a car from the Shriners in South Carolina back in 2006. The car had been slightly driven around for almost a year and we sold it within days to CarMax for $13,000 and we claimed ALL … read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I won a car worth 36,500, and will be paying 25% of the value
I won a car worth 36,500, and will be paying 25% of the value to the non profit that raffled it off. I plan on selling it right after getting the car, how much should I expect to claim next year as ad… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I live in Florida and just won a $109,000 Mercedes-Benz in
I live in Florida and just won a $109,000 Mercedes-Benz in a Michigan fund raising raffle for Easter Seals. The Mercedez rep has informed me that I will have to pay the Florida sales tax and a Gaming … read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I won a truck from a raffle from a church, though I do
I won a truck from a raffle from a church, though I do have documents for paying taxes at the dealer, I want to know if claim this as some form of income. Though I''m not sure exactly what the church … read more
Bill
Bill
Master\u0027s Degree
3,132 satisfied customers
My husband won a bass boat in a raffle end of 2005.
My husband won a bass boat in a raffle end of 2005. We paid $5K in income tax for the boat, but now the DMV is telling us that there was never sales tax paid on the boat. Are we now responsible for sa… read more
Christopher Phelps
Christopher Phelps
Sole Practitioner
Master Degree
1,180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x