If someone was to win a car, would they be able to defer the taxes and pay them the next tax year?

Question

in other words, if someone was to win a car, and since you more than likely have to pay taxes on it, could you tell them that you want to pay the taxes for the car during the next income tax year with your income taxes? i hope that makes sense.

Answer 1

No, the tax is due for the year when you win the car.

Answer 2

Depends on the value of the car.  If the value is high enough, the entity that they won the car from will probably require them to ante up 25% of the value of the car for taxes before they take delivery of it.  They do this because the government wants their share of your income in the same quarter as you earn it.

Answer 3

Yes, if you meet the advance tax requirements. One is that your tax withholdings and payments should be equal to 100% of the tax in previous year.

Read about advance tax:  http://taxipay.blogspot.com/2008/04/tax-...