| |
You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes) > Reporting lottery winnings
Expert: John Kirk, CPA
Date: 10/4/2008
Subject: Reporting lottery winnings
Question
I work for a charity and we will have a lottery where the winner will receive a car that was donated to us. The donor tells us the car is worth $50,000. We will give the donor a receipt acknowldging the receipt of the car but not state a value. How do we report the amount the lottery winner received?
Answer
You need to issue a 1099-misc to the winner stating the appraised value of the vehicle. Not what the donor claims as the value. You will need to record the donation and award on the books of the charity based on the independent appraised value of the vehicle.
John Kirk, CPA
www.johnkirkcpa.com
Add to this Answer
Ask a Question
|
|
