I won 2 roundtrip First Class flights JFK-Shanghai on China Eastern. How can I sell?
Dec 1, 2014, 9:36 am
#62
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Sorry for the delay in my response.
As I posted in the original post, this was a promotional event in celebration of the new 777s purchased by China Eastern Airlines. As you walked in, you were handed a nicely printed, heavy cardstock "boarding pass" with a raffle number on it. They gave away 3 economy seats, 3 business class seats, and 1 PAIR of first class seats. And then after they gave me the first class price, which consisted of just an envelope with a voucher inside, they then gave away additional economy and business class tickets. There were probably 20 winners at the event of maximum... 300 people.
As I posted in the original post, this was a promotional event in celebration of the new 777s purchased by China Eastern Airlines. As you walked in, you were handed a nicely printed, heavy cardstock "boarding pass" with a raffle number on it. They gave away 3 economy seats, 3 business class seats, and 1 PAIR of first class seats. And then after they gave me the first class price, which consisted of just an envelope with a voucher inside, they then gave away additional economy and business class tickets. There were probably 20 winners at the event of maximum... 300 people.
Just out of curiosity, where was the event held? Somewhere in Manhattan?
Dec 1, 2014, 10:08 am
#63
Join Date: Jan 2013
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I had to look up "tombola." Means raffle, for those of us Yanks.
Charitable raffles are an interesting area of tax law, at least in the US. Unlike most checks you write to charity, the price of the ticket is not tax deductible for US tax purposes. Have not done the research to determine exactly why that is, just know that it is so from some work I did with a local charity.
I have not researched the other side of the transaction - winning a bottle more expensive than what I paid for it -- but would report it if all or some of it turned out to be taxable.
The fact that you don't get a 1099 is irrelevant to the issue of whether it should be reported on your tax return. I routinely get less than 50% of the 1099's that I should in my business -- some of my customers forget to send them. But I report all the income nonetheless. And yes, I reported the $1 in bank interest that I did not get a 1099 for either.
It's called being honest. And if that does not do it for you, go reread the penalties of perjury statement at the bottom of your US Federal Tax Return. When you sign it, you are certifying that it is true and correct. It is not, as I heard someone call it once, your "opening offer."
Charitable raffles are an interesting area of tax law, at least in the US. Unlike most checks you write to charity, the price of the ticket is not tax deductible for US tax purposes. Have not done the research to determine exactly why that is, just know that it is so from some work I did with a local charity.
I have not researched the other side of the transaction - winning a bottle more expensive than what I paid for it -- but would report it if all or some of it turned out to be taxable.
The fact that you don't get a 1099 is irrelevant to the issue of whether it should be reported on your tax return. I routinely get less than 50% of the 1099's that I should in my business -- some of my customers forget to send them. But I report all the income nonetheless. And yes, I reported the $1 in bank interest that I did not get a 1099 for either.
It's called being honest. And if that does not do it for you, go reread the penalties of perjury statement at the bottom of your US Federal Tax Return. When you sign it, you are certifying that it is true and correct. It is not, as I heard someone call it once, your "opening offer."
Dec 1, 2014, 10:43 am
#64
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I could say that I'm not that honest, but it is probably more accurate to say that I can't be bothered with the time that these minor things consume. If I 'win' a bottle of wine or the use of someone's holiday home for a week, it's a complete pain to even think about how to value it. I actually tried to report this once in the UK (about 15 years ago), and the advice from the tax helpline was 'don't bother, it's more effort than it's worth.'
Dec 1, 2014, 11:00 am
#65
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Something else to think about here: the voucher is merely for the right to buy the F seats for $505. Since we know that the government taxes on flights to China are not $505, is this not merely a rather inexpensive - but paid - ticket?
Granted...very limited quantity...but not much different than if I win a voucher to some crazy Black Friday doorbuster deal, or win a random drawing for the right to buy World Series tickets at a face value well below what's trading on the secondary market.
If I buy a 1-euro flight on Ryanair, one that normally sells for 40 times as much on a base fare basis, should I be reporting that as income?
To 466SHH's point, if the seats truly had zero fees beyond $43 in taxes, and if I didn't have a 1099 and I wasn't remotely concerned about the unintended consequences of trying to be "honest" (with the IRS, which is a sort of laughable concept as I don't trust that organization in the slightest), I'd probably create my own value for the seats based on how I'd value the frequent flier miles I would otherwise use to redeem that award. After all, I have a hunch that the OP's tickets will get coded into either the award bucket or some other non-rev, non-EQM-earning bucket.
Granted...very limited quantity...but not much different than if I win a voucher to some crazy Black Friday doorbuster deal, or win a random drawing for the right to buy World Series tickets at a face value well below what's trading on the secondary market.
If I buy a 1-euro flight on Ryanair, one that normally sells for 40 times as much on a base fare basis, should I be reporting that as income?
To 466SHH's point, if the seats truly had zero fees beyond $43 in taxes, and if I didn't have a 1099 and I wasn't remotely concerned about the unintended consequences of trying to be "honest" (with the IRS, which is a sort of laughable concept as I don't trust that organization in the slightest), I'd probably create my own value for the seats based on how I'd value the frequent flier miles I would otherwise use to redeem that award. After all, I have a hunch that the OP's tickets will get coded into either the award bucket or some other non-rev, non-EQM-earning bucket.