Did you here about Oprah’s big car give-away a few days back? Every audience member got a new car for free. Oprah didn’t pay for them—General Motors did, as a promo.
But now the new owners are finding out (after many of them have driven around in them, no doubt), that they have a $7,000 tax bill to pay on the car.
… Someone in the 15% federal bracket (making, say, $28,000 as an individual, or $56,000 if filing jointly) and a 5% state bracket who gets a $30,000 car (the figure for the G6 is about $28,500) will owe an extra $6,000 in taxes. For a single earner in the 33% bracket kicking in at $143,500, the car adds $12,000 in tax.