When Free Ends Up Costing $25K

Uncle Sam spoils dream trip to space
Brian Emmett's childhood fantasy came true when he won a free trip to outer space.

But the 31-year-old was crushed when he had to cancel his reservation because of Uncle Sam.

After some number-crunching, Emmett realized he would have to report the $138,000 galactic joy ride as income and owe $25,000 in taxes.
Oracle should pick up the tax tab on this deal. Otherwise, what's the point of a contest to give away a free trip into space? Its not a free trip. Just like Oprah giving away a bunch of cars and then the recipients getting slammed with taxes that they couldn't afford to pay.

The article also talks about other free space trip contests where the winner also gets a cash reward to be used to help cover the tax liability.

Tags: , , ,