Ruby to Mexico cruise free

So I just won a 7 day Mexican Riviera cruise on the Ruby. I'll do the Classic California the week before also on the Ruby, use airline miles, and have a nice cheap 2 weeks.

Congrats!

Congratulations, hope you have fun. Just don't forget although it may be "free" at the end of year you will get a 1099 tax form and have to pay taxes on probably a full list price $$.

Congratulations, hope you have fun. Just don't forget although it may be "free" at the end of year you will get a 1099 tax form and have to pay taxes on probably a full list price $$.

Kill Joy! ;)

Congratulations, hope you have fun. Just don't forget although it may be "free" at the end of year you will get a 1099 tax form and have to pay taxes on probably a full list price $$.

I won a free Caribbean cruise on the Regal last year and it was worth every penny we had to pay!:p

Anyone winning a prize with a value of $600 or more must receive a 1099-MISC for the full retail value of the prize. No discounted or sale price. Enjoy your cruise.

Not true, the 1099-MISC would be for the Fair Market Value of the prize. You don't have to agree with what the company states as the Fair Market Value either - you can see how much the cruise would have cost you (watch for price drops and print out any price documentation) and enter the adjustment when you do your taxes (assuming the 1099 is higher than what you could have paid for it.)

A nice and simple explanation is available here: http://contests.about.com/od/taxesfinances/ht/FMVvsARV.htm

SharkieRools, wished we had known that last April! But NEXT time I win a cruise I will know!

Congrats! I agree on the 1099, pay fair market value only!

A free cruise? I wouldn't balk at the taxes. They really can't be all that much compared to paying for the cruise itself. :rolleyes:

Enjoy!

Congrats! Enjoy your two weeks of cruising.

So I just won a 7 day Mexican Riviera cruise on the Ruby.

How?

Not true, the 1099-MISC would be for the Fair Market Value of the prize. You don't have to agree with what the company states as the Fair Market Value either - you can see how much the cruise would have cost you (watch for price drops and print out any price documentation) and enter the adjustment when you do your taxes (assuming the 1099 is higher than what you could have paid for it.)

 

 

 

A nice and simple explanation is available here: http://contests.about.com/od/taxesfinances/ht/FMVvsARV.htm

A free cruise? I wouldn't balk at the taxes. They really can't be all that much compared to paying for the cruise itself. :rolleyes:

 

Enjoy!

Will depend on the person's tax bracket. Depending on the residence, could also be liable for state income taxes.

Yes and no. Yes, you can submit a request for a lower fair market value but it has to be either a published price or as the article says, a quote on a travel agent's letterhead. Either must be dated at the time the sweepstakes ends. It can sometimes take weeks or months to verify a winner.

Yes and yes. I see you left this part out from the article:

"The FMV applies to the time when you take possession of a sweepstakes prize"

Not sure where the "must be dated at the time the sweepstakes ends. It can sometimes take weeks or months to verify a winner" comes from since the article clearly states"the time when you take possession."

"The FMV applies to the time when you take possession of a sweepstakes prize"

This is correct.

If you have a 45+% combined Federal and State tax rate, the tax difference could be substantial.

How?

Internet contest. Sites all over the place.

Wow! Congratulations!

Big congrats. I won a cruise with Celebrity earlier this year. So nice. When are you going??

This is correct.

 

 

 

If you have a 45+% combined Federal and State tax rate, the tax difference could be substantial.

Taxable rate and taxable income varies, as well.

So I'm wondering why some are getting all worked up over the taxes?

It is certainly less money to pay the tax than to pay the listed fare, if I did not want to pay the tax, or not take that cruise I would decline the prize, and it's on me, not you. Perhaps it is sour grapes, or 'hey, lets stir the pot', as we see from time to time. The time to worry is when you win, not when I do.

I don't think anyone was worked up about taxation.

If the FMV on the 1099 stated $ 3,000(likely total rack rate) and your net effective tax rate is 45%, but the FMV at the time of taking possession of the prize(current listed price) was $ 1,300, one would be paying more in tax than the cost of the cruise.

I don't think anyone was worked up about taxation.

 

If the FMV on the 1099 stated $ 3,000(likely total rack rate) and your net effective tax rate is 45%, but the FMV at the time of taking possession of the prize(current listed price) was $ 1,300, one would be paying more in tax than the cost of the cruise.

Tax is based on actual cost of goods/services, not some fantasy cost. 1099's can be amended.

Oops.

Isn't it good to find something that the British, New Zealanders and Australians actually benefit by

When anyone in those countries (unless they are a USA citizen) WINS anything even $1,000000 it is tax free