Question: Is there a rule of thumb for the amount a dealer will actually sell for below the sticker price? I think I’m looking for a guideline that meets IRS fair-market-value definition
My hope is that people here know if a standard formula that is acceptable to IRS exists or can refer me to a respected, ‘known’ website for same or similar info/guidance in making a determination.
(a) I won a 2011 GMC Acadia Denali in 2011, MSRP $50,425. Received 1099 for about $4500 more. [Wanting to minimize my tax liability, I do have a call in to the car-giveaway entity to discuss possibility of getting a corrected 1099 reflecting a lower figure, but it’s a long-shot. I expect they’ll confirm that the extra $4500 is for tax/title/registration/whatever, which they covered.]
(b) I sold the car back to the dealer on the spot for a good chunk less than the MSRP, hence my wish to narrow tax-liability gap. (No, cash in lieu of car was not an option. All was transacted in accordance with the official rules of the giveaway, so there’s no point in asking or scolding me or head-scratching.)
© If location may be a factor, this is New York City.
(d) Someone with some sort of IRS training will be helping me file, but the person is not a CPA.
Some of you may remember me from last spring when I was in a tizzy over the whole thing. I’m glad Carolyn is still ruling the roost and hope you’ve all been well and happy. I still say that the next time I win a car, I’ll be ready.