I won Magnaflow's monthly drawing!

thebassn8tr · 11-08-2006, 09:00 PM

I was checking out the Magnaflow website the other day to look at all of the different exhaust options that were going through my head. A thing popped up and said to sign up for their monthly drawing. I thought "what the heck, I never win anything but it is free and doesn't hurt to try." I got an email yesterday saying that I won their dual exhaust and I need to give my shipping address and phone number. I can't wait! I hope it is legit and really doesn't cost anything out of my pocket. I am so stoked! Has anyone heard of anyone else winning this?

**P's Titan** · 11-08-2006, 09:17 PM

Quote:

Originally Posted by thebassn8tr

I was checking out the Magnaflow website the other day to look at all of the different exhaust options that were going through my head. A thing popped up and said to sign up for their monthly drawing. I thought "what the heck, I never win anything but it is free and doesn't hurt to try." I got an email yesterday saying that I won their dual exhaust and I need to give my shipping address and phone number. I can't wait! I hope it is legit and really doesn't cost anything out of my pocket. I am so stoked! Has anyone heard of anyone else winning this?

nope.. you may get a 1099G form but the cost of the exhuast maybe $500-$600? would not affect much with your taxes. Once you get in the K's then you watch your refund go bye bye

Congrats!!!!

AgTitan06 · 11-08-2006, 09:26 PM

That is so sweet! I'm jealous!!

thebassn8tr · 11-08-2006, 09:31 PM

Quote:

Originally Posted by P's Titan

nope.. you may get a 1099G form but the cost of the exhuast maybe $500-$600? would not affect much with your taxes. Once you get in the K's then you watch your refund go bye bye

Congrats!!!!

You mean that it is probably free and legit but I may have to claim it and pay taxes on it? Huh?

thebassn8tr · 11-08-2006, 09:32 PM

Quote:

Originally Posted by AgTitan06

That is so sweet! I'm jealous!!

Thanks! I was going to go with the JBA but since this free, it looks like I'm going with this.

AgTitan06 · 11-08-2006, 09:35 PM

Quote:

Originally Posted by thebassn8tr

You mean that it is probably free and legit but I may have to claim it and pay taxes on it? Huh?

Anything you win is taxable income. Just like the lottery. I have an accounting degree, but I don't remember the exact law from my tax class. I will inform you though that only 1% of all taxpayers are audited. Just an FYI. I'm pretty sure you just have to claim it as other income on your return. So, if you're in the 20% tax bracket, and it's valued at $500, you owe Uncle Sam $100 of it. There might be an amount that it has to be over in order to require that you claim it, but I don't remember. If you are still unsure, PM me and I'll find out from someone at my firm.

http://www.bankrate.com/brm/itax/new...e-winnings.asp
http://experts.about.com/q/Tax-Law-Q...e-winnings.htm

By no means should you consider this post as tax advice. Consult your local CPA for tax advice.

thebassn8tr · 11-08-2006, 10:15 PM

One of my Fiance's best friends owns a year round tax company. I'll just ask her. Thanks for the heads up. I just read the previous drawing winners and my name is listed at the top for the October winner. It is definately legit!

**Nissan Mike** · 11-08-2006, 10:32 PM

Yeah right they are never going to tax you.If they don't have you SS# how could the send in a 1099 form?
My niece had her car "OverHauled" 2 years ago and never got a 1099
Enjoy your exhaust,I'm jealous.
If you want to sell it put a thread in here

AgTitan06 · 11-08-2006, 10:44 PM

Quote:

Originally Posted by Nissan Mike

Yeah right they are never going to tax you.If they don't have you SS# how could the send in a 1099 form?
My niece had her car "OverHauled" 2 years ago and never got a 1099
Enjoy your exhaust,I'm jealous.
If you want to sell it put a thread in here

Doesn't matter if you get a form or not...you still have to claim it as other income. If you don't, you are technically committing tax evasion. Just look at the guy who won the million dollars on Survivor and didn't claim that money. He's probably gonna go to jail now - don't fuk with the IRS...It's unlikely you will get caught, but if you do, it will be your worst nightmare....It all is about your ethics if you will claim it or not, because in all honest, it's unlikely you will get caught. You just gotta apply your personal principles to the situation. I'm an Aggie and our honor code is "An Aggie does not lie, cheat, or steal, nor tolerate those who do"....It's your choice. But just find out the exact law, and then make your decision from that. You can also estimate the market value of the exhaust and claim that, but just make sure to keep proof of where you got the number in case you get audited.

**This message is not intended to be legal tax advice**

**Nissan Mike** · 11-09-2006, 07:50 AM

Quote:

Originally Posted by AgTitan06

Doesn't matter if you get a form or not...you still have to claim it as other income. If you don't, you are technically committing tax evasion. Just look at the guy who won the million dollars on Survivor and didn't claim that money. He's probably gonna go to jail now - don't fuk with the IRS...It's unlikely you will get caught, but if you do, it will be your worst nightmare....It all is about your ethics if you will claim it or not, because in all honest, it's unlikely you will get caught. You just gotta apply your personal principles to the situation. I'm an Aggie and our honor code is "An Aggie does not lie, cheat, or steal, nor tolerate those who do"....It's your choice. But just find out the exact law, and then make your decision from that. You can also estimate the market value of the exhaust and claim that, but just make sure to keep proof of where you got the number in case you get audited.

**This message is not intended to be legal tax advice**

Sorry Ag we are just not going to see eye to eye on this one,as far as I see it this is a gift from Magnaflow.When Santa come to my house,he doesn't leave a 1099 either.
Don't get me wrong I pay 31% Fed and 9% State taxes and am self employed and claim all income generated through work.
I just don't think that is someone or some company gives you a $300.00 muffler that the IRS is entitled to their cut on this.
This is a far cry from Richard Hatch from Survivor not reporting a million dollar income earned from a reality show.
We pay too much in taxes already,for what so we can "rebuild" Iraq?
And don't even get me started on taxing used car sales,how many times should the state receive sales tax on a heavily turned over used car?
They got the tax when new right?
I'm not a crook but a realist,at some point a line must be drawn,mine just happens to be a little closer to the working man

Chris03hd · 11-09-2006, 07:57 AM

I've won a full cat-back before, and didnt have to claim it. And yes, everything about it was FREE.. no shipping, etc. etc.

Actually sold it, and got what I wanted with the money.

thebassn8tr · 11-09-2006, 08:46 AM

Quote:

Originally Posted by Chris03hd

I've won a full cat-back before, and didnt have to claim it. And yes, everything about it was FREE.. no shipping, etc. etc.

Actually sold it, and got what I wanted with the money.

lol! I'm already thinking about selling it to get the JBA that I had my eyes on, a stock pair of step rails, and still come up on top with $50. Thanks for the tax info guys. I will talk to my tax person. And of course thanks for the congrats guys.

AgTitan06 · 11-09-2006, 10:04 AM

Quote:

Originally Posted by Nissan Mike

Sorry Ag we are just not going to see eye to eye on this one,as far as I see it this is a gift from Magnaflow.When Santa come to my house,he doesn't leave a 1099 either.
Don't get me wrong I pay 31% Fed and 9% State taxes and am self employed and claim all income generated through work.
I just don't think that is someone or some company gives you a $300.00 muffler that the IRS is entitled to their cut on this.
This is a far cry from Richard Hatch from Survivor not reporting a million dollar income earned from a reality show.
We pay too much in taxes already,for what so we can "rebuild" Iraq?
And don't even get me started on taxing used car sales,how many times should the state receive sales tax on a heavily turned over used car?
They got the tax when new right?
I'm not a crook but a realist,at some point a line must be drawn,mine just happens to be a little closer to the working man

I understand, but just letting you guys know what the law is...And be careful what you write on the forums regarding this, you never know if there is an IRS agent that owns a Titan. Not trying to be a d!ck, just informing yall.

Quote:

Originally Posted by Chris03HD

I've won a full cat-back before, and didnt have to claim it. And yes, everything about it was FREE.. no shipping, etc. etc.

Actually sold it, and got what I wanted with the money.

You mean you didn't claim it, you were supposed to...It's the same thing about if you find $500 on the ground. According to the IRS, you MUST claim it, but in reality no one would...Same concept here...Any money you receive is taxable. I'm not talking sales tax, I'm talking income tax. But I agree it is stupid, but that law is what it is... LOL...

Anyways, congrats on the muffler, but please, cover you @$$ and don't post what you plan to do regarding the tax implications.

Here is the tax code regarding prizes and awards:
http://www.fourmilab.ch/ustax/www/t26-A-1-B-II-74.html

Quote:

Except as otherwise provided in this section or in section 117 (relating to qualified scholarships), gross income includes amounts received as prizes and awards.
Exception for certain prizes and awards transferred to
charities
Gross income does not include amounts received as prizes and awards made primarily in recognition of religious, charitable, scientific, educational, artistic, literary, or civic achievement, but only if -
(1) the recipient was selected without any action on his part to enter the contest or proceeding;
(2) the recipient is not required to render substantial future services as a condition to receiving the prize or award; and
(3) the prize or award is transferred by the payor to a governmental unit or organization described in paragraph (1) or (2) of section 170(c) pursuant to a designation made by the recipient.
(c) Exception for certain employee achievement awards
(1) In general
Gross income shall not include the value of an employee achievement award (as defined in section 274(j)) received by the taxpayer if the cost to the employer of the employee achievement award does not exceed the amount allowable as a deduction to the employer for the cost of the employee achievement award.
(2) Excess deduction award
If the cost to the employer of the employee achievement award received by the taxpayer exceeds the amount allowable as a deduction to the employer, then gross income includes the greater of -
(A) an amount equal to the portion of the cost to the employer of the award that is not allowable as a deduction to the employer (but not in excess of the value of the award), or
(B) the amount by which the value of the award exceeds the amount allowable as a deduction to the employer. The remaining portion of the value of such award shall not be included in the gross income of the recipient.
(3) Treatment of tax-exempt employers
In the case of an employer exempt from taxation under this subtitle, any reference in this subsection to the amount allowable as a deduction to the employer shall be treated as a reference to the amount which would be allowable as a deduction to the employer if the employer were not exempt from taxation under this subtitle.
(4) Cross reference
For provisions excluding certain de minimis fringes from
gross income, see section 132(e).

Sorry guys, this is just the accountant in me... lol