MSN: The other side of winning on a game show

[easttxtv]

http://money.msn.com/tax-planning/win-a-game-show-that-will-cost-you.aspx

 

[anotherguyTN]

I've always thought that I'd rather be on a game show where the prizes are mostly or all money. I've always thought that most prizes were overpriced, especially jewelry, which is what I'd be the least interested in, and that with money you could pay the taxes out of the winnings. And I would definitely turn down any prizes that I didn't care about keeping.

 

[FreddyE1977]

My mom knew someone who won something on TPIR once, and said that the IRS
actually had an agent waiting backstage with paperwork for the winners! You might
win a car or a trip worth $25,000, but Uncle Sam wants an estimated payment on the
tax up-front. And for most of us, it's not easy to quickly come up with the income
tax on $25K.

 

[TheRob]

I've met a couple of people who appeared on TPIR as college students back in the '90s. At that time, if you won a prize, a rep from the game show met you backstage with a form stating whether you would accept or decline the prizes, understanding you would pay taxes on the MSRP of those prizes if you accepted. They did not ask for a tax payment immediately. But you would receive a nice, new 1099 form in the mail.

 

[1069_KIFR]

I had heard that the contestant was not liable for the taxes of the prizes until that episode aired. As that became evidence for the owed taxes.

 

[mjlarochelle]

Another issue I've always thought of, what about the cost of getting to the game show? If you fly from Boston to Hollywood to appear on TPIR - and stay in a hotel, and win nothing but a $500 prize in contestants row, you could be worse off than before you left home.

 

[PTBoardOp94]

That's why Jeopardy went to cash prizes for 2nd and 3rd place contestants. Ten years ago, they gave away trips, furniture, and the like. But furniture didn't pay for a trip to SoCal.

The nature of TPIR, where contestants are "randomly" selected from the audience, means that most of the contestants were already in California. Rational people aren't going to fly from Boston to LAX so they can have a 1 in 70 chance of appearing on TPIR.

 

[anotherguyTN]

I had heard that the contestant was not liable for the taxes of the prizes until that episode aired. As that became evidence for the owed taxes.

That would probably be the best policy considering how on some prime time game shows contestants win big only to find the show is cancelled and the producers and/or networks use that as an excuse to not pay them their winnings, at least for unaired episodes.

 

[Laurence Glavin]

That's why Jeopardy went to cash prizes for 2nd and 3rd place contestants. Ten years ago, they gave away trips, furniture, and the like. But furniture didn't pay for a trip to SoCal.

The nature of TPIR, where contestants are "randomly" selected from the audience, means that most of the contestants were already in California. Rational people aren't going to fly from Boston to LAX so they can have a 1 in 70 chance of appearing on TPIR.

I enjoy "Jeopardy", but I think it's kind of chintzy that the second and third-place finishers get measly prizes instead of the moolah they "won" during the contest. I suppose that people who finish with minus signs shouldn't have to PAY the Griffin estate; maybe a minimum payback like at the racetrack.

 

[ajc_trw]

Back in the 80s when game shows were still quite hot the LA Times classifieds was full of game show prizes for sale. IIRC the bargains were quite plentiful and it was yet another good reason to live in SoCal. 8)

 

[easttxtv]

Back in the 80s when game shows were still quite hot the LA Times classifieds was full of game show prizes for sale. IIRC the bargains were quite plentiful and it was yet another good reason to live in SoCal. 8)

I bet that was really trippy to see... I wonder if anybody tried to put out an ad for "a year's supply of Rice-a-Roni" or "Creamettes" or other tasty parting gifts 8)

 

[Markxxx]

I wonder what exactly constitutes a "year's supply" of Rice-A-Roni"?

 

[radiorama1]

I know this is a little off-topic, but I've always wondered:

Suppose I appear on the Price Is Right and win a trip to New York City. Now I know that the airfare from all trips won on TPIR is from Los Angeles... but I live in say, Boston. Would I have the option of flying from Boston to NYC? Or would I have to book a trip to Los Angeles, then fly to NYC and back to LA, and then fly back home to Boston?

 

[easttxtv]

Suppose I appear on the Price Is Right and win a trip to New York City. Now I know that the airfare from all trips won on TPIR is from Los Angeles... but I live in say, Boston. Would I have the option of flying from Boston to NYC? Or would I have to book a trip to Los Angeles, then fly to NYC and back to LA, and then fly back home to Boston?

Most announced trips I've seen on TPIR include "from Los Angeles". Not sure if there's any backstage after-show finagling or if they even allow transferability. Otherwise, you've already spent $$ on a round-trip to get to the show, you'd better have the $$$ for another round-trip to L.A. I'm not sure how the show handles multiple-destination prizes (pricing game or on the showcase)--whether you get to fly onto the next destination without having to come back to L.A. first, or even if you have the choice to "turn down" any of the trip itinerary to lower your taxes.

 

[anotherguyTN]

Back in the 80s when game shows were still quite hot the LA Times classifieds was full of game show prizes for sale. IIRC the bargains were quite plentiful and it was yet another good reason to live in SoCal. 8)

I bet that was really trippy to see... I wonder if anybody tried to put out an ad for "a year's supply of Rice-a-Roni" or "Creamettes" or other tasty parting gifts 8)

I wonder of you could make a deal with a local grocery store to trade them for something you'd really want?

 

[anotherguyTN]

Suppose I appear on the Price Is Right and win a trip to New York City. Now I know that the airfare from all trips won on TPIR is from Los Angeles... but I live in say, Boston. Would I have the option of flying from Boston to NYC? Or would I have to book a trip to Los Angeles, then fly to NYC and back to LA, and then fly back home to Boston?

Most announced trips I've seen on TPIR include "from Los Angeles".  Not sure if there's any backstage after-show finagling or if they even allow transferability.  Otherwise, you've already spent $ on a round-trip to get to the show, you'd better have the $ for another round-trip to L.A.  I'm not sure how the show handles multiple-destination prizes (pricing game or on the showcase)--whether you get to fly onto the next destination without having to come back to L.A. first, or even if you have the choice to "turn down" any of the trip itinerary to lower your taxes.

I vaguely remember once on Let's Make a Deal where a Hawaiian couple won a trip to Hawaii.  It would be equal to me winning a trip to Memphis or Nashville, which I have seen as prizes before. I'd decline the airfare and just take the hotel stay and tour.  :

 

[bpatrick]

That's why Jeopardy went to cash prizes for 2nd and 3rd place contestants. Ten years ago, they gave away trips, furniture, and the like. But furniture didn't pay for a trip to SoCal.

The nature of TPIR, where contestants are "randomly" selected from the audience, means that most of the contestants were already in California. Rational people aren't going to fly from Boston to LAX so they can have a 1 in 70 chance of appearing on TPIR.

I enjoy "Jeopardy", but I think it's kind of chintzy that the second and third-place finishers get measly prizes instead of the moolah they "won" during the contest. I suppose that people who finish with minus signs shouldn't have to PAY the Griffin estate; maybe a minimum payback like at the racetrack.

"Plus" and "minus" are simply a means of keeping score; nobody who winds up in the hole has ever had to pay back "Jeopardy!" out of their own pockets. As for the reason that only the winner keeps the cash won in the game, there are two, one of which is never publicly divulged, and that is that with five shows a week, and the potential cash payouts in five figures, the show would have difficulty staying within the budget if all three players won big every day. The stated reason is that, on the original show where everybody kept their winnings, some players would reach a certain amount, decide that was all the money they wanted, then stop playing or wager nothing on "Final Jeopardy!". When the Trebek version debuted in 1984 that rule was changed, which means that most of the time, unless the player in the lead going into "Final Jeopardy!" has more than twice what the player in second place has, the outcome is in doubt until the very end because nobody can afford to hang back in "Double Jeopardy!" or wager nothing in "Final Jeopardy!".

 

[landtuna]

When the Trebek version debuted in 1984 that rule was changed, which means that most of the time, unless the player in the lead going into "Final Jeopardy!" has more than twice what the player in second place has, the outcome is in doubt until the very end because nobody can afford to hang back in "Double Jeopardy!" or wager nothing in "Final Jeopardy!".

Actually, that happens frequently. It isn't at all unusual that the leader going into "Final Jeopardy" is uncatchable.