turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Oct 16 is the IRS deadline–file confidently with expert help. File Now
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

I received a 1099 for winning a vehicle. I was told that i don't have to claim the full amount of the 1099 but can claim the vehicle's worth?

 
This feature is pending. Thanks for your patience.
Didn't get the answer you wanted? Talk to a live expert to get the help you need.
1 Best answer

Accepted Solutions
Hal_Al
Level 15

I received a 1099 for winning a vehicle. I was told that i don't have to claim the full amount of the 1099 but can claim the vehicle's worth?

Enter the 1099-Misc, in TurboTax (TT).  You will reach a screen "Does one of these uncommon situations apply". Check "This was prize winnings". The next screen will allow you to make an adjustment for the fair market value (FMV).  Enter as a positive number.  The adjustment will go on line 8z of Schedule 1 as a negative amount.

View solution in original post

8 Replies

I received a 1099 for winning a vehicle. I was told that i don't have to claim the full amount of the 1099 but can claim the vehicle's worth?

from IRS reg 1.74-1(a)

(2) If the prize or award is not made in money but is made in goods or services, the fair market value of the goods or services is the amount to be included in income.

 

see this thread about determining FMV

https://www.taxcpe.com/blogs/news/tax-consequences-of-noncash-prizes 

 

I received a 1099 for winning a vehicle. I was told that i don't have to claim the full amount of the 1099 but can claim the vehicle's worth?

My question now is how do you do enter a different amount than what is listed on the 1099?  Wouldn't that cause a red flag or do i enter what i belive to be a fmv from lets say msvp? 

Hal_Al
Level 15

I received a 1099 for winning a vehicle. I was told that i don't have to claim the full amount of the 1099 but can claim the vehicle's worth?

Enter the 1099-Misc, in TurboTax (TT).  You will reach a screen "Does one of these uncommon situations apply". Check "This was prize winnings". The next screen will allow you to make an adjustment for the fair market value (FMV).  Enter as a positive number.  The adjustment will go on line 8z of Schedule 1 as a negative amount.

I received a 1099 for winning a vehicle. I was told that i don't have to claim the full amount of the 1099 but can claim the vehicle's worth?

Thank you and one more question and i hope i will have it, lol.  Can i offset the cost with my gambling losses since i won it by gambling and my gambling incurred entries?

TomD8
Level 15

I received a 1099 for winning a vehicle. I was told that i don't have to claim the full amount of the 1099 but can claim the vehicle's worth?

TurboTax has a help article on this:

https://turbotax.intuit.com/tax-tips/jobs-and-career/how-to-pay-taxes-on-gambling-winnings-and-losse...

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

I received a 1099 for winning a vehicle. I was told that i don't have to claim the full amount of the 1099 but can claim the vehicle's worth?

@mythara gambing losses are only deductible on Schedule A and can not exceed your gains.  So  if you are taking the standard deduction, the losses are not deductible. 

 

You can not simply net gambling gains and losses and call it a day. 

 

Also, what is your supporting documention that the vehicle is worth less than what is on the 1099? You just can't state it is less to you (i.e. "i never would have paid that much for this car" won't fly as an acceptable response).  What was the MSRP or Kelly BB value of a new car with the same features and upgrades, etc. 

I received a 1099 for winning a vehicle. I was told that i don't have to claim the full amount of the 1099 but can claim the vehicle's worth?

The fair market value listed on KBB.  I received a 10-99 not a 10-99g how do i process that against my losses?

I received a 1099 for winning a vehicle. I was told that i don't have to claim the full amount of the 1099 but can claim the vehicle's worth?

@mythara please be more specific... a 1099 what? MISC?  please provide the entire form number. 

 

if you received a brand new car for winning something and you are now going to use the fair market value of the car.  be sure you are using the fair market value of a brand new car with the same features  as the car you received has. 

 

Regardless of the form, you can only deduct your losses if your are itemizing.  Otherwise, you can't deduct gambling losses. 

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing
Manage cookies
v