Won a truck, now what?

[The G-Man]

So on Monday morning (right after being on leave for 30 days) at work there was a Commander's Call where everyone is gathered in an auditorium on base (I'm an Air Force officer) and the wing commander starts talking about the Air Force club and why it is so good to be a member (I'm not really listening because I am a member) and then he starts talking about a contest the club put on where they were giving away 2 Chevy trucks (I thought maybe the winner was somewhere else). Then he says the winner is here at Laughlin (my base) and that the winner is in this room. I joked to my buddies that I entered that contest, but probably didn't win.

Then he announces the winner: Lieutenant Gary Rogers, THAT'S ME!

So I walk down to the stage in shock, felt kinda like being called down on the Price Is Right, and shake his hand and take a few pictures and then I go to lunch at the club where they interview me and take pictures with a truck brought down from the local Chevy dealer (not my actual truck).

you can see a blurb on the front page at http://www.laughlin.af.mil/news/story.asp?id=123435606

But enough on that, I actually am seeking a little help:

It is my understanding that I am responsible for the taxes on this truck ($45k) which basically doubles my taxable income. I think my base pay for the year this year is going to be $46k. So I am seeking advice from a CPA, if there are any around here (PM me and I can give you a call) or if anyone else has any tips/tricks.

Also hopefully I won't actually get a Silverado (It is my understanding at this point I can have $45k to spend on any GM vehicle).

And no, I'm not going to get a Corvette. It is an extra $10k for the base model and I am going to be going to Oklahoma for 3 months over the summer then moving to the Philly area around labor day so I think I want an SUV.

[Fleetw00d]

Congratulations! (I think) If still available, go back and read the rules of the contest closely. You may be required to pay the estimated taxes on the value of the prize before being able to claim it. Check to see if there is an option for a cash payout from which the taxes could be withheld. Along with the income taxes, you will also likely be liable for any applicable sales tax.

[Straight Success]

Congrats. That's my type of truck.

[The G-Man]

Congratulations! (I think) If still available, go back and read the rules of the contest closely. You may be required to pay the estimated taxes on the value of the prize before being able to claim it. Check to see if there is an option for a cash payout from which the taxes could be withheld. Along with the income taxes, you will also likely be liable for any applicable sales tax.

I found the expanded rules...

http://www.myairforcelife.com/Giveaway/

It does not appear that I need to pay the income tax at delivery, just sales tax/title/registration.

[Jarrett]

With a 6.25% auto tax rate in Texas you're looking at around $3000 out of pocket.

[emosun]

I'd sell it and pocket the 45k , 45k has 45k worth of value while the truck will never keep it's value.

[H311RA151N]

You cannot legally sell anything that's not yours nor can you sell a vehicle with a title that has your name in the purchasers slot and has not been turned into the department of motor vehicles. If the title is turned in then he has to pay the sales tax. Which is the issue in the first place. Not to mention once a vehicle rolls off the lot it's value depreciates significantly. So it's not a $45,000 vehicle anymore. You could try to sell it for $45k but then a buyer would rather go to a dealership and get one off the lot for the same price rather than buy used. And an individual selling a vehicle for $45,000 is a pain in the ass. Most people don't shop for a vehicle and carry $45,000 in cash. Selling it would be a loss and a pain.



It's a shame that after winning you are faced with such a dilemma. Especially being an active member of our military.

I would try and get something I could use since you have to pay the sales tax, registration and title fee's anyhow. If you can use an SUV then that would be my choice.

In MO you can get a temp tag for up to 60 days to allow you more time to pay for the sales tax. No idea as for Texas law on that though it may be an option if need be.

[Raf99]

Nice! Pay the tax, keep it, drive it, use it. Everyone needs a reliable vehicle. And if you sell it, then just sell it. The dealership may even take it off your hands or you could get something else.

[gloryaccordy]

With a 6.25% auto tax rate in Texas you're looking at around $3000 out of pocket.

Hes gonna get taxed a lot more than that. This car is income according to the IRS

I would buy GM's car with the highest resale value, sell it, pocket the rest. After taxes he's probably looking at $20-25K cash.

[Ralphie]

I think I want an SUV.

Guess everyone missed this part.

[H311RA151N]

Guess everyone missed this part.

Almost everyone.



I think I would choose an SUV as well if given the same choice. I don't know which one but the 2015 Equniox is a full sized SUV, seats 5 and gets 32mpg highway all while maintaining a little over 300hp.

I would feel bad about not using the full $45,000 though. Even though the more you spend the more your going to pay in taxes. It's quite the decision.

[JoshM]

Congrats, Gary!

I remember scrolling through FB and seeing this... and honestly thought you were joking. Glad you get a $45k credit towards a GM vehicle!

I can't be of help tax wise... but regardless, congrats!

[The G-Man]

With a 6.25% auto tax rate in Texas you're looking at around $3000 out of pocket.

I was wondering how much that was.

You cannot legally sell anything that's not yours nor can you sell a vehicle with a title that has your name in the purchasers slot and has not been turned into the department of motor vehicles. If the title is turned in then he has to pay the sales tax. Which is the issue in the first place. Not to mention once a vehicle rolls off the lot it's value depreciates significantly. So it's not a $45,000 vehicle anymore. You could try to sell it for $45k but then a buyer would rather go to a dealership and get one off the lot for the same price rather than buy used. And an individual selling a vehicle for $45,000 is a pain in the ass. Most people don't shop for a vehicle and carry $45,000 in cash. Selling it would be a loss and a pain.



It's a shame that after winning you are faced with such a dilemma. Especially being an active member of our military.

I would try and get something I could use since you have to pay the sales tax, registration and title fee's anyhow. If you can use an SUV then that would be my choice.

In MO you can get a temp tag for up to 60 days to allow you more time to pay for the sales tax. No idea as for Texas law on that though it may be an option if need be.

BOOM, exactly what I was thinking. And don't shame part of this contest about me being in the military... It was only really open to military people and civilians who are eligible for club membership.

Nice! Pay the tax, keep it, drive it, use it. Everyone needs a reliable vehicle. And if you sell it, then just sell it. The dealership may even take it off your hands or you could get something else.

So said and done, I'll probably need to refinance the truck (my prelimary thinking to cover cost of tax/title/registration and the federal income tax on that $45k extra for the year). Getting financing for ~$6k on a $45k vehicle should be no problem.

[Pandemic]

Congrats!

[H311RA151N]

I was wondering how much that was.


BOOM, exactly what I was thinking. And don't shame part of this contest about me being in the military... It was only really open to military people and civilians who are eligible for club membership.

I guess I don't understand what the club is and whatnot. It's awesome you won and be sure to post up some pics of the vehicle you decide on.