Oceania Cruises Riviera Giveaway Contest

[LauraS]

Just wanted to make sure you all saw this:

 

Enter for a chance to win an Inaugural Season Voyage for two aboard Oceania Cruises’ magnificent new Riviera!

 

Riviera’s elegant, “Country-Club Casual” ambiance invites you to relax and experience the world from a unique vantage point. After all, being mid-sized affords indulgences you simply won't find on larger vessels. Plus, gifted chefs consistently present cuisine that is, quite candidly, the finest at sea. With a generous ratio of staff to guests, you’ll experience an astonishingly high level of personalized service. Pleasures abound, always with you in mind.

 

Please note: this Oceania Sweepstakes (“Promotion”) is open only to legal residents of the fifty (50) United States and the District of Columbia.

 

Enter here: Oceania Cruises Riviera Inaugural Season Voyage Sweepstakes • Win a Free Cruise!

U.S. Residents only.

 

__________________

Laura

[Ragnar Danneskjold]

For those of you that live in high-tax states, like good old Kalifornia, be aware that you will be paying upwards of 50% of the value of the cruise package in taxes to Uncle Sam and, in my case, Uncle Jerry.

 

Also keep in mind that the cruise package is reported to the taxing authorities at the highest retail value, i.e. at full rack-rate prices. Makes a great tax deduction for Oceania, but the "winner" gets the shaft.

 

Only enter this contest if you are in a low tax bracket and live in a low-tax state. Otherwise the taxes you would pay would pay for the same trip if bought on your own with the usual discounts.

[TKS]

Thanks, Ragnar. Another disadvantage - O will pick which cruise and will announce the winner 45 days before sailing and airfare is NOT included.

 

Looks like a way O is trying to generate new leads, but the winner may get more than they bargained for.

[ORV]

For those of you that live in high-tax states, like good old Kalifornia, be aware that you will be paying upwards of 50% of the value of the cruise package in taxes to Uncle Sam and, in my case, Uncle Jerry.

 

Also keep in mind that the cruise package is reported to the taxing authorities at the highest retail value, i.e. at full rack-rate prices. Makes a great tax deduction for Oceania, but the "winner" gets the shaft.

 

Only enter this contest if you are in a low tax bracket and live in a low-tax state. Otherwise the taxes you would pay would pay for the same trip if bought on your own with the usual discounts.

 

I'd like to see an actual breakdown of your numbers and an explanation of how it would work.

[LHT28]

No Canadians allowed ...:(:(

[Mura]

I have another question for you knowledgeable ones -- the prize is an inside cabin. Do they permit you to upgrade by paying the difference?

 

It doesn't sound like it would be worth it if the prize is valued a full rack-rate prices.

 

I entered but we don't have to worry because I never win anything. Well, that's not quite true. I once won $950 in the NY State Lottery. That was my first entry, and ever since then -- zilch.

 

Mura

[Ragnar Danneskjold]

35% Fed

1.45% Medicare (not sure if this applies until 2013 on this type of income)

9.3% Calif (good news, this dropped from 11.3 in 2011!)

-----

45.75%

 

Would have been 47.75 in 2011.

 

It's all going up next year, and that is why I'm retiring this year. Not worth working for 50 cents on the dollar.

[Decebal]

Really? That much? I always assumed that prizes you win in a contest, lottery, game show quiz, etc, is taxed at 25% everywhere. I can't imagine Jeopardy champs paying half their winnings in taxes.

As for the gripping about taxes, as a Hollywood resident I have to say I have never been happier to pay taxes in my life after going through the terror of an arsonist and the AMAZING response of our firefighter heroes. They saved hundreds of lives because of a pissed off lunatic. BRAVO!!!!

[TERRIER1]

Prizes are taxed as income with the non-cash prize valued at fair market value. The rules states that the value is $4,999.

[hondorner]

I would asume that the value of such a prize is taxed as ordinary income, which means it would depend on your tax rate. Few would be paying 35%, only those with an adjusted traxable income of $379,150 and above.

 

For me, the Fed rate would be 15% and there is no income tax in Florida :).

 

If they tried to value it at the "brochure" rate, I would appeal it based on the fact that no one pays the brochure rate. The reported value should not even be the normal 2-4-1 rate as it does not include air.

[Oceans&Rivers]

I don't gripe about taxes. In 1959 the top rate (Federal) on regular income was 91% and the capital gains rate was 25%.

[philv]

Gee I just entered and now you folks are making me hope I don't win. Party poopers. :mad:

[Ragnar Danneskjold]

379K in Orange County, CA is poverty level :eek:

[BillPizzaiolo]

As they say you have to be in it to win it. That is a choice we all have.

 

Taxes are the fee we all pay for living in one of the best places on earth. We just need to make it fair for all.

[TERRIER1]

The state tax rates got my interest picked so I looked up the state tax rates. I live in New York which is notorious for "high" everything which included state and property taxes. Looks like Hawaii wins out with a 11% high range tax with California at 9.3% and then Iowa at 8.98%. I would have never thought Iowa would have such a high state tax but at least the state lets you deduct your federal taxes which should lower the burden. I have to find another state to retire to.

[scottieg]

I have loved Cruise Critic over the years but my only concern is that these contests are frequently for Americans only. Canadians are big cruisers too. Cruise Critic please fix this.

[potterhill]

And if we win, it is tax free....must go get that lottery ticket!

 

Mo

[no fuss travel]

But if you win anything over $500, the US government withholds income tax on it if you are a non-resident. That is why one has to be careful that they never cash out more than $499 I believe it still is when gambling.

[CANDYAPPLE]

Ah, yes, but IF you win big on the ships casino slots (it's rare, but I did) and you are in International waters, and you are Canadian, there is NO withholding tax....I got to keep (and my wife spent) it all!! lol

 

 

 

 

Cheers CANDYAPPLE

[rallydave]

I would asume that the value of such a prize is taxed as ordinary income, which means it would depend on your tax rate. Few would be paying 35%, only those with an adjusted traxable income of $379,150 and above.

 

For me, the Fed rate would be 15% and there is no income tax in Florida :).

 

If they tried to value it at the "brochure" rate, I would appeal it based on the fact that no one pays the brochure rate. The reported value should not even be the normal 2-4-1 rate as it does not include air.

 

Don, while your logic is impecible, it is not correct. Unfortunately prizes are valued at full retail rates and that includes cruises where no one pays the full price and the full retail price is a minimum of 200% of the highest anyone pays. Have watched game shows giving away cruises on Regent and Oceania and was able to check the price of the specific cruise they gave away and it was the full retail price as shown on the website and in the brochures.

 

Am relatively sure that most people on those shows have no idea of the tax issues they will get into when winning non cash prizes. As another poster stated, if you are in a high tax bracket and high tax state, it would be cheaper to refuse the prize and pay for the cruise.

 

As far as your 15% federal rate, yes, that is what you would pay for the prize but, depending on your other income, it could cause you to pay tax or more tax on your social security as it could drive you to the 50% or 85% taxable rate for your and your wife's social security income??

 

Your logic about no one paying the full rate is spot on but, the IRS would simply tell you the dollars on the 1099 that you would receive are the basis of the prize and that's that.

 

Not sure but, think the company giving away the prize can take a tax write-off for it and that is likely why they put the full retail price on the prize. Since it allows the company to deduct double or so of what they would earn if they sold the cruise so with the write off, it basically costs Oceania nothing to give away the cruise but, it would cost you and anyone else dearly.

[no fuss travel]

Ah, yes, but IF you win big on the ships casino slots (it's rare, but I did) and you are in International waters, and you are Canadian, there is NO withholding tax....I got to keep (and my wife spent) it all!! lol

 

 

 

 

Cheers CANDYAPPLE

 

Lucky you.:). My girlfriend and I lucked out when at Lake Tahoe many years ago. We made sure that we did not go over the $500 limit each day, cashed out, and managed to pay for our trip and come home with money. Only time I have been that lucky.

[First Time 2008]

Your logic about no one paying the full rate is spot on but, the IRS would simply tell you the dollars on the 1099 that you would receive are the basis of the prize and that's that.

 

Unless things have changed, this is just not true. I happened to have won a one-week all-inclusive at a resort some 15 years ago, airfare included. At the time that I accepted the prize, I got quotes from travels agents and online and print ads for what the going rate was. Indeed when the 1099 came it listed the full retail price and then some. I attached some IRS form to my return that allowed me to adjust the value on the 1099 to the fair market value, and attached a statement with the rationale and the types of proofs I had. I never even sent in the proofs. Never heard from the IRS.

 

Now, perhaps I was just got lucky. But the fact there there is a specific IRS form to adjust your 1099 is a pretty clear indication that you can do it.

 

Hey, the form still exists. It's form 4598. See this article about it (no, I do not vouch for the article's correctness, but it matches my experience). May this be of use to the winner.