Oprah & Pontiac Give Away $8 Million Worth Of New Cars (1 Viewer)

[Holadem]

Why are some trying so freaking hard to see the negative in a good deed?

I don't get it.

--
H

 

[John Alvarez]

 

[Ted Lee]

 

[Phil_L]

Not only that, but they will have to report as income the amount of tax Pontiac paid FOR them. This is considered income by the IRS.

 

[John Alvarez]

Dudes,
I wasn't trying to bash anyone for doing a good deed. I think taxes on all gifts are 28%. I just think that it would suck if I was some poor person in desperate need of a car and to have this gift dropped in my lap only to find out it is going to cost me 7k that I couldn't afford to buy a used car with?

I think the idea was great but if this is the case then the execution sucks...

 

[Jay H]

I bet now that the fact that the winners have to pay these taxes is on CNN.COM now, somebody or some company (pontiac?) will step in and pay the taxes for them.

The next question is if somebody pays them the taxes from the car, will that payment be considered a gift and that payment taxed. Would this be a infinite loop?

Jay

 

[Phil_L]

Hey Jay, see my post above on this.

 

[Malcolm R]

Smooth move, Oprah! Not everyone can find $7,000 under their sofa cushions like you do.

 

[Seth_L]

Oh, boo hoo... They can turn it down if they don't want to pay the taxes.

I love how everyone is so outraged that these people have to pay taxes on these cars, but the same people don't care that they're income is being looted in the same way from the IRS on a monthly basis.

If people had to actually write a check to the gov't for their yearly tax bill (like these people will have to do on their Pontiac G6s) there'd be another revolution.

 

[BrettB]

This is hilarious. Stupid Oprah. Doesn't she know she has to do it ALL. You can't just half-ass it. What, the trunk isn't filled with C notes? Oprah isn't gonna come over on the weekend to wash and wax the car? She isn't gonna pump the gas? What an insensitive moron.

My advice; go to the bank and take out a loan to pay the taxes, sell the piece of crap, buy a 13K Corolla and a 42" plasma.

 

[Phil_L]

We talked about this problem in my Federal Income Tax class this morning. It IS a pretty good deal to get a $28,000 car for $7,000. And, if you don't want it, sell it and you still come out ahead. My prof is pretty obsessed with this case, with all of its interesting tax implications. And I thought law school had no relation to real life.....

 

[Denward]

quote:

The next question is if somebody pays them the taxes from the car, will that payment be considered a gift and that payment taxed. Would this be a infinite loop?

Well, it is an infinite loop but it converges into an easily solved equation. If your tax rate is 30% and I want to give you 28,000 after taxes, then I just give you 28,000/.7 = 40,000. You report 40k as income, pay 12k in taxes, and you're left with 28k free and clear.

 

[Ted Lee]

do we even know if that is FOR SURE the case? has anyone clarified that pontiac is NOT going to pay the taxes?{QUOTE]It IS a pretty good deal to get a $28,000 car for $7,000. And, if you don't want it, sell it and you still come out ahead.[/quote] exactly.



brett, not sure if you were being sarcastic in your post or not, but i hope so.



i can't believe how much time i feel i'm spending in this thread defending a person with a show i actually don't like watching. i've said it before -- i may not like the oprah show, but i think oprah (the person) is one classy act.



why can't we get over the fact that some people may have to pay taxes? can't anyone here recognize a nice deed? hell, even if it was poorly executed (or whatever), at least the intent was nice. i bet if you were in the audience that day you'd all be singing a different tune.



sheesh!

 

[Ted Lee]

umm..what's up with all those big paragraph breaks?

 

[Todd Hochard]

I think it's a bit disingenuous to give/take the credit for being so completely philanthropic, when in fact, you haven't spent a penny out of pocket.

 

[Seth_L]

Pontiac should be getting the credit for the cars. Oprah could cough up the taxes if she wanted to actually do something here.

 

[Ted Lee]

i give up...

 

[Charles J P]

I'm only replying to track this thread and see what develops because I'm basically reading 50/50 on the web between people who say that Pontiac is ALSO paying the taxes and people who say no such thing. I'd like to see what happens. To turn the old phrase into a full-blown analogy, its like bitching about having to buy oats for the "gift horse".

 

[Steve Ridges]

While it's very nice that a lot of people got free (sort of) cars, I don't like the idea of people gushing about how wonderfull these rich philanthropists are. This was no sacrifice whatsoever for Oprah. In fact, she will probably make more money than she gave away thanks to the publicity. I have more repect for the normal people that really make a sacrifice to give time or money away.

 

[Malcolm R]

quote:I'm basically reading 50/50 on the web between people who say that Pontiac is ALSO paying the taxes and people who say no such thing.

Neither Oprah nor Pontiac can pay the taxes because the additional money to pay the taxes would be considered a further gift which would have to again be claimed as income.

Bottom line, the people receiving these gift cars have to dispose of this situation themselves. They either pay the tax bill themselves, refuse the car, or sell the car to pay off the tax bill and pocket the balance.

You can't get something for nothing. (really, you can't).