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August 2014 Tip of the Month

YOU WON THAT SWEEPSTAKES BUT, YEH, BUT WHAT’S THAT PRIZE REALLY WORTH?

Have you had the good fortune to win a prize in a contest? Frequently, businesses that award prizes inflate the value of the prize to enhance their marketing efforts or even their own tax deduction when they send you a Form 1099. If this happens to you, shop around and determine whether the amount was overstated and do not pay tax on the inflated amount. Instead, consider reflecting the amount shown on the Form 1099 on your tax return, then deduct the overstated portion and enclose an explanation with your tax return. You should pay tax only on the real value of the prize you received. To be able to substantiate your action to the IRS, Abo and Company suggests you obtain documentation from a vendor who is selling the same merchandise at the lower price. We believe you should be entitled to use the lowest price for which you could have purchased the prize for tax return purposes.

By the way, it’s Friday, August 15, 2014 but on Friday, August 15, 1969, Marty Abo and some 400,000 “close friends”  were at the Woodstock Music and Art which we all know as just WOODSTOCK.   Attached is an article that appeared in the Courier Post commemorating the 20th anniversary of Woodstock and asking Southern New Jersey…”Where are they now?”.  As an aside, at the time, Marty Abo represented the then publisher of this Gannett affiliate, The Courier Post, and we think he was responsible for out-joking Marty by placing the Woodstock commentary and Marty’s picture below the headlines for that day concerning Megan’s Law which was enacted soon after.  Thank you Bob Collins.

(Enjoy your weekend and Marty still has two tickets for Woodstock if anyone wants to buy one).