"That might not be a bad deal - getting something you wanted for a fraction of the normal price. But a little more research showed that in some cases (primarily some types of clothing) the MSRP was set SO high that the taxes owed exceeded the normal actual selling price, almost as if the seller was running a tax write-off scam. "
Well that's kind of nasty.
No kidding.
I remember a long time ago, American Airlines was running a sweepstakes with the top prize being a bundle of 1st class airline tickets. The winner was overjoyed to get the prize, but then was shocked when informed he'd be taxed on the value. Then he found out that AA was going to declare
full retail price as the value - at a time when airline tickets were being heavily discounted. The winner realized that the tax he'd pay would be
higher than the discounted fares that were available, so - he refused the prize. Publicly.
AA was embarrassed, and they worked "something" out - I
think it was a reduced declaration of value on the tax forms.
My wife has been doing this for a while now. Upside, free stuff. Downside 1099 for taxes. Not sure how that’s gonna play out against us yet.
If you don't mind my asking, what kind of "free stuff" was being offered? And do they indicate what the value will be
before your wife orders it?
