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.
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
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?
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.
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?
TurboTax has a help article on this:
@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.
The fair market value listed on KBB. I received a 10-99 not a 10-99g how do i process that against my losses?
@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.
@mythara wrote:since i won it by gambling and my gambling incurred entries?
If I'm reading that correctly, your gambling merely entered you into a non-gambling drawing. As a prize in a non-gambling drawing, no, you can not use gambling losses to offset the prize winnings. That explains why you received a 1099-MISC rather than a W2-G for gambling winnings.