Winning a car in a contest?

Question

I just won a 2009 chevy corvette from an instant win game from pepsi. The retail show is 48,500, im 19 years old and i live in michigan. I have no idea what to do becuase idk what to do about the taxes or even how much tax there is going to be. If anyone could help me it would be greatly appecaited.

Answer 1

See if you can get the money instead because the insurance will eat you alive!

Answer 2

When you register the car you will have to pay taxes on 48500.  In NY that would be 4183.

Congrats, that's a great win!!!

Answer 3

I have no idea what Michigan tax laws are but congratulations on the win.

Answer 4

Congrats on the win.

But, along with the sales tax, you are also required to declare the full retail value of the car on your tax returns.

So be prepared to shell out about 33% of the value of the car in income taxes.

Answer 5

wow that's pretty cool

but the insurance is going to be outrageous.

your best bet is to sell the car outright or sell it to your Father and have it put in his name and under his insurance with you as an additional driver under an umbrella policy.

you'll owe sales tax on the total value, 8% if you lived here.

so figure at least $4,000.

but seriously the insurance could be $800 a month.

so sell it and use the money to buy a more practical car or have ownership transferred to your Dad.

You get a 1099 for any prizes valued over $600.

Next year the $48K will be on your tax return as unearned income. Depending on your tax bracket you'll owe at least another $2,000.