Seems like a popular enough show that an enterprising car company would donate a car in turn for some sort of a plug. But all Steve Harvey does is announce the prize as a “Brand new car!”
Does FF just buy the car and give it away? Wouldn’t it be smarter to approach different car manufacturers and ask for a car and some sponsorship and have Steve plug the car?
If not why wouldn’t some marketing genius approach FF and offer sponsorship money and a free car for the plug?
Surely the donator of the car can’t simply be satisfied with a camera shot of the front of the car showing he manufacturer tag.
My wife tells me it might be cut out of the reruns (which is what I watch on GSN) or there’s some sort of side deal. Seems like someone is leaving a lot of money on the table here and it’s odd to me.
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I suspect it’s easier and legally cleaner in case there is a change of program sponsor or the network sells block advertising time not sullied by other brands. A well-inserted ‘new car’ could almost be considered ambush marketing if you’ve paid handsomely for prime commercial time.
I know that on The Price is Right you win all the actual stuff. (People often have to sell some of the prizes to cover the taxes.) Dunno about Family Fued, though. Even in the depths of the worst flu I ever had, I couldn’t bring myself to watch that.
My buddy won the actual car on a game show. He was a moron and didn’t pay the taxes on the winnings (which is a pain, actually - “You just won a car worth $50,000!” Uh, I can’t afford to pay the taxes.) He ended up in a boatload of debt.
I was under the impression that on quiz shows, that if you “win a car”, you don’t get the keys from the quizmaster and go drive your new car waiting outside. What they do is give you a voucher for what they feel it is worth (list price) and you go to a dealer and negotiate what all you want and pay extra for various options.
Can I just ask is paying taxes on prize wins routine? Does it apply differently to dumb luck games vs games of skill (eg horse racing vs errrr… horse racing)? If you got a $50,000 car how much would you be up for in tax?
I ask as in Australia gambling wins are not taxed (there may be exceptions), and I’m assuming TV prizes are in the same bag.
It’s the same tax rate on both. The income taxes would be charged at the same rate as the income taxes on most other income, for example your salary from your job.
Since we have a progressive tax rate system, the actual amount of tax to be paid would depend on how much other income the winner had and what other exemptions, credits, or deductions the winner qualified for. A rough guess would be that a lower-middle income taxpayer might end up paying 15 to 28% in federal income tax plus another 4 ro 9.3% in California state income tax (assuming the show is filmed in California or the winner lives in California).
Note that this is not considered gambling because the winner does not have to bet any money to play. However, the tax rate on gambling is the same.