FlyerTalk Forums - View Single Post - Taxable Valuation of Miles Won in Sweepstakes
Old Jan 10, 2005 | 1:39 am
  #35  
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Ken in Phx, the tax tables are stepped in increments of $50.
Originally Posted by cordelli
I think one of the things that will be a bit difficult to change is that you said the value was in the rules, which you agreed to before entering, so you are probably stuck with them.
Agreement to the terms and conditions is not automatically an agreement with the the donor as to Fair Market Value.

Even if it were, no such agreement has any direct relevance as to actual FMV, except perhaps as one more data point. If the agreed value were artificially high or low, that would certainly not bind the IRS.

Other posters have given able advice on methods of evaluating FMV that will likely pass muster.
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