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Re: So what's the point of this contest again?

Posted: Mon Mar 05, 2007 2:21 am
by Rob562
Marilou wrote:It's been awhile since I read the rules but I want to say I remember seeing something about Disney also giving a cash amout to go along with the big prizes to help out on the IRS tax issue thing? Course, I could be wrong (wouldn't be the first time)
Nope, you're exactly right. All of the top-level prizes include a cash portion to cover (estimated) taxes. (The rules say that Disney makes no guarantee that the cash portion is sufficient to cover all taxes) The Castle Suite and Mickey Mouse Suite stays are both valued at under $600, so the IRS forms aren't necessary.

In the case of the three DVC memberships, not only are the (estimated) taxes included, but the yearly maintenance fees are paid for, as well as money to cover an exchange fee every three years into a non-Disney timeshare through Intervals International.

I'm sure Disney doesn't want the media fiasco like Oprah did when she awarded a new car to every member of her audience one day The audience was made up of poor/under-priviledged people who could use a new car, but turned out couldn't afford to pay the taxes on the prize. Oprah ended up paying for the taxes, too.

-Rob

Re: So what's the point of this contest again?

Posted: Mon Mar 05, 2007 1:36 pm
by mechurchlady
Good point about cash included to pay taxes. There is a myth that people will pay half the value of the prize. When people do not know the rules and do not know things like that cash is included then they may turn down a prize.