How would you feel?

MizLuvMonkey

MizLuvMonkey

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I played in the LIPS Championship in July, coming in 10th. While playing I took out a bounty & was told I won 4 days/3 nights in Vegas. That was all I was told.

During the break I was asked for my email address so that the information of where the stay was could be sent to me. No other information was given to me.

About 4 days after the tourney was over I receive an email stating that the 4 days/3 nights was to be for Sept 4-6 & that it was for 2 blackjack tourney's that were paid for.

When I emailed the person who was handling all this that I could not make the trip at that time, I received an email informing me that if I cannot use the trip, then it is my responsibility to not only find someone to play for me, I also have to pay the taxes for the prize package value of $650, not sure how much that will be in taxes. This is the first I have been told there is a monetary value for the prize.

I have requested that I be able to use this package, that I am paying for, when I have the opportunity. If I would have been told when it was before I took the bounty out, I would not have tried so hard.

I would like to know what you think

Thank you,

MizLuvMonkey
 
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Tammy

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WHAT? That's BS. They should give you a cash equivalent or eat the cost, imo. Most expensive "prize" I've ever heard of. Keep us posted on how this goes. You might want to contact the Gaming Commission in Nevada and see what they have to say about it.
 
absoluthamm

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Where was it that you were playing this at? I have heard of people having to pay the taxes on physical prizes such as this if it is over a certain amount of money, both winning in poker and also in other ways such as sweepstakes. I am not sure what the amount is, but this would probably go under that. Good job on winning, sorry you can't "claim" your prize when you want though.
 
kaiWalk

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I am unaware of the LIPS Championship, but I would closely scrutinize any paperwork you have.

Regarding the taxes on the bounty, it's the same as poker winnings (presumably).

I'm going from memory so definitely research this further, but current IRS rules require a W2-G anytime poker winnings exceed $600. The one out that you have, is that prize valuations typically use rack rates and full fare airline prices to ensure that they have no liability for under-reporting to the IRS.

Take the prize info and have three different travel agents quote you prices for the same trip. Since the total value is only $50 over the IRS threshold, I'm sure you will get a consensus value below the taxable amount.

Regardless, you'll need a CPA for your taxes this year.

Alternatively, if this $650 is your only reported gambling income, it may end up being cheaper to pay Uncle Sam, then it is to pay a CPA. Even at a 30% tax bracket, the taxes are less than $200.
 
Tammy

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I think you misunderstood, kaiwalk...the $650 is the amount of taxes she has to pay (at least that's how I read it).
 
kaiWalk

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You made me go back and reread it Juicee.

I'm pretty sure the $650 is the value of the prize.

the taxes for the prize package value of $650, not sure how much that will be in taxes.

Of course, during the re-read I realized that she came in 10th place so I'm pretty sure her poker winnings already exceed the $600 mark, reducing the benefit of re-valuing the prize.

Odd math, that winning a bounty hand could potentially have negative equity, but if the chips involved are not enough to drastically alter one's position, it is a possibility.

P.S. Great name LuvMonkey
 
Stick66

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OK. Yes, the situation sucks. But there's not much you can do to change the terms of the prize except ask for sympathy. I'd say there are some lessons to be learned here:

- ALWAYS know the details of all the prizes you are playing for BEFORE you play for them. You are bound by the details of the prizes. It's their ballgame so you must play by their rules, whether they tell them to you or not. (If they can't prove that the prize details were available to you in writing beforehand, then you might have a case.)
- TAXES on prizes must be paid for prizes by the prize winner regardless of whether they are used, not. EX: If you won a car from Bob Barker but didn't have a driver's licence or insurance, it's up to YOU to sell the car and pay the prize taxes.

Anyway, hang in there and good luck.

****
For the curious: The LIPS Championship is a ladies-only tournament.

Another curious fact: Recently, California made ladies-only poker tournaments illegal on the grounds of discrimination. So LIPS events can no longer be held in California.
 
roundcat

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Since I enter a lot of contests/sweepstakes I know a fair bit about winning prizes.

$650 is actually a pretty reasonable value to be assigned to the prize if the stay is at a nice hotel. They should send you a tax form 1099 for any prize valued at over $600. It's taxed at the same rate as regular income and reported at the end of the year on your tax return. If you think the value is less you can keep receipts and adjust the amount on your return.

If you don't accept the prize, you don't have to pay taxes on it. If you do accept the prize and don't use it, you still have to pay taxes. It sounds like you may have verbally accepted it after winning the bounty. Did they send you paperwork to fill out? If they did and you don't want the prize, don't fill it out and tell them you're declining it.

Do you have a friend who'd be interested in using the stay and playing in the blackjack tournament? They might be willing to pay the $125 or so in taxes. (They would pay you, and you'd pay the IRS.)

Sorry they didn't give you the details up front. :( It's not uncommon for prizes with some kind of event involved to be restricted to certain dates.
 
MizLuvMonkey

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Well, after emailing them & asking for the cash value of the prize to be awarded to me, they now tell me that there are 3 other dates I can use, December 2008, March & June. 2009. LOL. I will use it next year, like I wanted to.

Funny how you ask for money & they change their tune!!

Thank you all for your feedback. I really appreciate it!!

LIPS = Ladies International Poker Series. Did not know about California discriminating it, that's a shame! It's a great series, to be able to play with your peers.
 
MrMuckets

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This is the value of the prize. People on game shows also have to pay taxes on prizes they win. Your government is watching and taking. The tax is usually set at 20% of the prize value or 650 x .20 = 130. When you pay the tax and go to vegas keep every receipt you can get your hands on especially gaming receipts. You will need them to write off your winnings when you file your taxes in January. Although 650 is a small amount and you would probably not be questioned on it.:):):)
 
Nek

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I played in the LIPS Championship in July, coming in 10th. While playing I took out a bounty & was told I won 4 days/3 nights in Vegas. That was all I was told.

During the break I was asked for my email address so that the information of where the stay was could be sent to me. No other information was given to me.

About 4 days after the tourney was over I receive an email stating that the 4 days/3 nights was to be for Sept 4-6 & that it was for 2 blackjack tourney's that were paid for.

When I emailed the person who was handling all this that I could not make the trip at that time, I received an email informing me that if I cannot use the trip, then it is my responsibility to not only find someone to play for me, I also have to pay the taxes for the prize package value of $650, not sure how much that will be in taxes. This is the first I have been told there is a monetary value for the prize.

I have requested that I be able to use this package, that I am paying for, when I have the opportunity. If I would have been told when it was before I took the bounty out, I would not have tried so hard.

I would like to know what you think

Thank you,

MizLuvMonkey

I think that it's a hoax nice and clear!!!
Instead of winning something,you will end up losing!!!!It's ludicrous...

It's high time you stop spending anymore of your time or energy with them!!!!:mad:
 
MrMuckets

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No it is quite legit. On the Price is Right for example when people win those big prizes they ofter have to sell them to pay the taxes. And if it's a cash prize they will get their share after the government takes it's share.:(
 
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