Recipients In Oprah's Car Giveaway Face Hefty Taxes
POSTED: 7:05 am CDT September 22,
2004
UPDATED: 7:06 pm CDT September 22,
2004
CHICAGO -- It was the car giveaway seen and heard around the world, but people who got brand new cars in a surprise giveaway on "The Oprah Winfrey Show" last week are finding out that those vehicles aren't exactly free.NBC5's Lisa Tutman said that the 276 audience members who received Pontiac G-Sixes on Winfrey's show will need to come up with thousands of dollars to cover taxes on their winnings.
Images: Car Giveaway Has $7,000 Catch
Pontiac agreed to pay most of the local charges, including state sales tax and licensing fees.But the hitch is that each winner must report the car's $28,500 value as income and pay taxes on it -- which could add up to more than $7,000.Some recipients say it's still a good deal.Winner Tiffany Self (pictured, left) -- a Wheaton College employee -- points out that it isn't often that you can get a brand new car for $7,000."The scene in the studio was mayhem," Self recalled.Harpo officials declined an on-camera interivew Wednesday, but a spokeswoman said by phone that car recipeints have a number of viable options they can consider; options to fit any pocketbook and options that still make the giveaway a great deal.According to Tutman, winners can decline the car altogether or sell the vehicle, pay the taxes and keep the remaining cash. Those who decide to keep it can claim the car as late as the end of February 2005 and therefore not pay taxes until tax season 2006.
More News: Cat Stevens Removed From Plane, Michigan Teen Caught On Tape With Assault Weapon, World's Smallest Dog
More News: Cat Stevens Removed From Plane, Michigan Teen Caught On Tape With Assault Weapon, World's Smallest Dog
Copyright 2004 by NBC5.com The Associated Press contributed to this report. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.









