Won a non-cash prize Fair Market Value question

[PrizeWinner]

I won a non-cash prize in 2023.  The 1099-MISC came in and box 3 lists the value of the item at $1195, which was the cost of the item when buying from the manufactorer at the time.  Several weeks later, but still in 2023, the manufacturer reduced the price to $945.00.  Can I adjust the value of the item $250?

[Vanessa A · Accepted solution]

No.  The value of the prize is the price is was selling for on the day you won it.  You cannot make adjustments because the value went down a few weeks later. 

[Bsch4477]

Well, the IRS has a copy of your 1099-Misc and their computer is going to match the amount they have with what you report so you might get a letter requesting an explanation. The IRS could take the position that the correct value was the one at the time you received the prize. You have to decide if it’s worth it to you to adjust the amount.