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I won a cruise from NBC last year and have been unable to take it - TAX issue

Summerland Key, FL |

Under Dr . care for depression for years recovering from cancer treatment and have not worked in 3 years so I cant afford the tax . I got a 1099 misc for the full fare of the cruise . I called them to let them know I didn't take the cruise and at the time I was told I would get a 1099 when I took the cruise for the actual amount of the cruise , I also said I would send the certificate back they sent me . I did research last year and found the cruise discounted a lot and kept the INTERNET paperwork printouts of the discounted fare . I can claim the FM of the trip correct ? Do I even have to pay the taxes since technically I refused the prize by not taking the trip ? HELP

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Attorney answers 4

Best Answer
Posted

I would argue this issue In Tax Court. Under Section 1 of the tax code, income is defined as an acsession too wealth. Since you did not reap any benefits, you may be able to argue that you did not experience the definition of income as mentioned above. However, this may only be successful if the tickets are something that you never really wanted in the first place and you can prove that you never went on the trip . It will be a tough uphill battle, but if you succeed it may be worth your time.

Asker

Posted

I thought I was winning a cruise, but all I won was a certificate with numerous black out dates including 3 months. I did not receive tickets, I received a certificate that I have to send in to the cruise line with 3 preferences for sailing date, the dates may not be available and its subject to numerous blackout days. Also its for the cheapest rooms, I have proof that I could have got the cruise cheaper I am going to send my explanation with my taxes if I have to claim a cruise I have never taken. FMV should be used.

Posted

Interesting question. I would like to tell you that you do not have to pay income tax on the trip because you were unable to take it. The problem is that you received the free tickets so you had the ability to use them. The fact that you let them go to waste is your fault. You can't just walk away from income, unfortunately.

Asker

Posted

I did not receive tickets, I received a certificate that I have to send in to the cruise line with 3 preferences for sailing date, the dates may not be available and its subject to numerous blackout days. Also its for the cheapest rooms, I have proof that I could have got the cruise cheaper I am going to send my explanation with my taxes if I have to claim a cruise I have never taken. FMV should be used.

Posted

I agree with Mr. Givner. Unfortunately, by not either refusing delivery of the tickets or sending them back shortly after acceptance, you probably have the same liability as if you took the trip, since you had the means to go.

The above is not intended to be legal advice, but may be used for general information. Please contact an attorney for specific help tailored to your needs. www.figgardenlaw.com

Posted

You need to speak with a tax professional that is familiar with all Department of Treasury Internal Revenue code provisions.