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

[Todd Hochard]

quote: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.

Denward solved that quite simple math dilemma above.

 

[Malcolm R]

quote:Denward solved that quite simple math dilemma above.

I know, but I seriously doubt Pontiac or Oprah will consider shelling out an additional $12,000 per person to make it all go away.

 

[Kenneth]

quote: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.

I think we can cut the corporate givers a little more slack than that. Are people who give selflessly "better" givers? Maybe. However, just because a corporate giver gets a benefit (I am sure the cars were written off and of course Oprah gets some publicity, as does the car maker) that doesn't diminish the fact that they at least tried to provide something to folks who needed it.



Corporations have given to schools at all levels for years not out of selflessness but because they receive benefits in community support, taxes, and other incidentals. That doesn't diminish the fact that the schools receive a service or commodity that they might not otherwise be able to obtain.



Kenneth

 

[Holadem]

quote: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.

...which, any way you cut it, is better than not being given anything to pay tax on, refuse, or sell off and profit from.



Bottom line, everyone wins: Pontiac, Oprah, the giftees and the IRS.



--

H

 

[Ted Lee]

quote:that doesn't diminish the fact that they at least tried to provide something to folks who needed it.

you know, i had a really great long-winded, smart-ass answer about how simple and poignant that statement is, but i''ll just sum it up with the following:

 

[James_Kiang]

I don't mean to hijack this thread or anything, but let me ask the same sort of question about another show. Do the people on Extreme Makeover Home Edition have to pay any taxes for the items they get or the work on their homes? Imagine that bill...

 

[BrettB]

Yikes! Ted, I think your sarcasm detector is broke. Get thee to a doctor.

Re: the home makeover show. Property taxes are probably the biggest problem.

 

[Ted Lee]

whew brett! ye had me worried me laddie!

 

[David Williams]

quote:Do the people on Extreme Makeover Home Edition have to pay any taxes for the items they get or the work on their homes? Imagine that bill...

No, but I imagine they won't exactly be pleased when their property taxes are reassessed.

 

[Paul_Medenwaldt]

I apologize for resurrecting this thread, but I had an idea about the tax situation.



If Oprah were to have sold the cars to each audience member for $1, would these people still be in the same place with having to pay taxes?



Paul

 

[D. Scott MacDonald]

quote:If Oprah were to have sold the cars to each audience member for $1, would these people still be in the same place with having to pay taxes?

Yes. If you buy something for significantly less than it's worth, you still have to pay taxes on its perceived value. There are some grey areas, but cars are not one of them since their value is well understood.

 

[Ted Lee]

oprah spoke about this on the show yesterday.



she explained the tax law (which we already know) and said the audience members had to sign some form when they left. they had three options:



1. keep the car, pay the taxes

2. sell the car, keep the profit

3. decline the car



amazingly, nobody declined the car!



she then showed some clips of what some of the audience members have done with the vehicles.



it apears, bottom line, that the audience members will be paying the taxes.

 

[Seth_L]

quote:2. sell the car, keep the profit

That should be...

2. sell the car, keep the profit, pay ~$7k taxes on value of car.

 

[Ted Lee]

seth -



so, figuring the car costs about 20k and that's what they sell it for, does that mean that person will still net 14k?



doesn't seem like a bad deal either way.

 

[Chris Lockwood]

> Do the people on Extreme Makeover Home Edition have to pay any taxes for the items they get or the work on their homes?



My magic tax ball says yes.





> I don't like the idea of people gushing about how wonderfull these rich philanthropists are.



Yeah, let's hear more about some POOR philanthropists.



The nerve of those rich people, giving people stuff! Who do they think they are?