Are you a U.S. taxpayer? If so, you might receive a 1099 for the book value of the cruise you just won and will have to pay taxes on the full brochure rate.
If you had not accepted the gift, you would not be taxed but it seems you have accepted it.
The cruise tickets are transferable and my purchase price was about $2. The cruise is leaving on Jan 22 and it is sold out. The tickets are for a DELUXE VERANDAH OCEANVIEW STATEROOM.
The retail for the tickets are $2.5k each and the lowest possible price was to fill a few remaining slots from VacationsToGo listed at $950 each. I am looking for $650 a ticket obo and the purchaser will need to pay taxes / fees according to the travel agent. Still a great deal for 7 days.
Are you a U.S. taxpayer? If so, you might receive a 1099 for the book value of the cruise you just won and will have to pay taxes on the full brochure rate.
If you had not accepted the gift, you would not be taxed but it seems you have accepted it.
There might be language it is 'non-transferable'.
If he sells it, he can use that value as the value for his 1040, assuming he sells it shortly after getting it, and not that he received it 6 months ago and decide to sell it today at a clearance sale price.
You do not have to agree to the value set by the company giving it away.
NOTE: THIS IS NOT TO BE CONSIDERED OFFICIAL ADVICE FROM YOUR TAX PREPARER OR TAX ATTORNEY.
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Won tickets for Jan 22-29 for two on Smooth Jazz Cruise
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