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Old 01-09-2011, 3:53 AM
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halifax halifax is offline
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Location: Mendocino County
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Originally Posted by ugimports View Post
I've "won" prizes before. The organization doing the giveaway sends a tax form in with the value of the item and you should get a small post card with a tax form number on it stating the value of your prize. When you do your taxes there's a form you'd fill out for "gifts" or "prizes" which I think is at a different tax rate then your normal taxes. When I won this I was a kid so I was exempt from paying it ($500 monitor).
I think you're referring to income tax there.

Originally Posted by grammaton76 View Post
Question for you: on the Front Sight promotional where we're getting free guns, is there something which covers guns which are free? I guess this is the same as winning one in a raffle, etc.

I have a hunch the state is going to want sales tax on the MSRP of each and every gun we get.
I asked the BOE specifically about Front Sight "gifts" and sales tax before. Their response didn't really address my inquiry regarding out-of-state gift givers.

Regulation 1670, “Gifts, Marketing Aids, Premiums and Prizes,” provides that persons who make gifts of property to others are the consumers of the property and tax applies with respect to the sale of the property to such persons.

As such, those that purchase tangible personal property, i.e. firearms, for the purpose of giving as gifts should pay sales tax reimbursement to the seller or report use tax on the purchase price of such items. For additional information on reporting California use tax, please refer to Publication 79b.
I concluded that I am not responsible for the sales tax under 495.0843 and 6007 because, clearly, the BOE says the "giver" of the gift is.

That was just my conclusion though...not legal advice.

Last edited by halifax; 01-09-2011 at 5:09 AM.. Reason: added disclaimer
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