Romes
Romes
Joined: Jul 22, 2014
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January 11th, 2018 at 10:46:40 AM permalink
Quote: DRich

I'm sure you would still pay the taxes on your winnings too, right?

Of course, but at least then I could get back like 99%...
Playing it correctly means you've already won.
Gandler
Gandler
Joined: Jan 27, 2014
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January 11th, 2018 at 12:15:23 PM permalink
What are the rules for the casino cash? Do you have to play through it at least once?
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GWAE
GWAE
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January 11th, 2018 at 12:17:59 PM permalink
Quote: Romes

I think it depends on the $40k the casino is giving you. Is it FP? You said CASH in the OP... that means take another 30% out of that $40k for taxes... so really you're only getting about $28k... At that point so long as you don't have other reasons (such as chopping with a team immediately or something) it's almost criminal not to take the $57k credit... ESPECIALLY if the dealership lets you pay "everything including taxes" with the credit. I'd have to ask a tax guy, but a "credit" at the car dealership may not be something subjected to tax up front (similar to FREE PLAY at a casino) because it may hold no cash value technically but just be something the dealership honors. So you won't have anything of value until you actually get a car with the credit. Basically I'm overthinking this and I have no idea the tax answers. My guess is once you get a car (or two) you'd have to pay taxes on that... similar to running the FP through and hitting a W2G off the FP.

If the casino is offering $40k in FP and it can be used on VP, I'd take the FP.

If I could get away with getting 2 cars and paying less in taxes and possibly selling both (or 1 car) for $45k cash or more, then I'd probably do that too. I also do not support tax evasion, however, I think it's basically criminal that they can retax the same vehicle over and over on used sales. Thus, while I might not do it, I wouldn't care if someone else sold their "$20k" car for "$1k" because it was a "close family friend" or something.



Romes whenever you win a car or cash in a drawing you are given a 1099 and not a w2g.

If you take the car you will not only have to pay taxes on the msrp but you will have to pay sales tax on the car. If they are just giving you credit I am not sure if that credit can be used for taxes. Also if you resell the car right away, do you have to pay capital gains taxes on it?

Cash just seems more convenient here.
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DRich
DRich
Joined: Jul 6, 2012
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Thanks for this post from:
onenickelmiracle
January 11th, 2018 at 12:30:17 PM permalink
Quote: GWAE

Romes whenever you win a car or cash in a drawing you are given a 1099 and not a w2g.

If you take the car you will not only have to pay taxes on the msrp but you will have to pay sales tax on the car. If they are just giving you credit I am not sure if that credit can be used for taxes. Also if you resell the car right away, do you have to pay capital gains taxes on it?

Cash just seems more convenient here.



If you take the car you pay tax on the fair market value of the car not on the MSRP.
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mamat
mamat
Joined: Jul 13, 2015
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January 11th, 2018 at 12:36:37 PM permalink
Some casinos only offer 60% or 40% for the cash option. ...which shifts the decision for some people (they take cash at 60%, but car at 40%).

Worse, on some specialty cars/bikes, there is no cash option.
FCBLComish
FCBLComish
Joined: Apr 11, 2010
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January 11th, 2018 at 4:44:23 PM permalink
If you win $57,000 in dealership credit, you will pay income taxes on $57,000 regardless of whether you buy a car or sell your interest.

Sales tax on the price of the car is a completely different animal. You may be able to roll that into the $57,000.
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BTLWI
BTLWI
Joined: Nov 6, 2013
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January 11th, 2018 at 7:19:44 PM permalink
Cash was "cash" in any form that I wanted at the cage. I choose a check for $40,000.

It was a good new year.
Venthus
Venthus
Joined: Dec 10, 2012
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January 11th, 2018 at 7:28:11 PM permalink
Quote: BTLWI

Cash was "cash" in any form that I wanted at the cage.



Did they at least have one of those giant novelty checks?
ahiromu
ahiromu
Joined: Jan 15, 2010
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January 11th, 2018 at 7:54:13 PM permalink
Quote: BTLWI

Cash was "cash" in any form that I wanted at the cage. I choose a check for $40,000.

It was a good new year.



Congrats, you made the right choice.
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Mission146
Mission146
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Thanks for this post from:
RogerKint
January 11th, 2018 at 8:11:20 PM permalink
I agree with ahiromu.

The only way I'd ever take a car is maybe if I didn't already have one. Probably not even then.

Unless it's a Hyundai...then I'd take the car. Not really, but I love my Hyundai.
Vultures can't be choosers.

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