I won car valued @25000. Actual dealer price 22649. Do i use selling price or FMV from KBB for taxable income?

You use the amount on the Form 1099-MISC that you got from the promoter.



If the dealer invoice is $22,649 you're going to have a pretty tough time arguing the $25,000 as unreasonable. If the KBB "Fair Purchase Price" for the exact model and options is significantly less than the amount on the 1099 you may have an argument, but the IRS is going to demand proof of your position before accepting a lesser amount.



If you believe that you can substantiate a lesser amount, prepare a written statement and include copies of your evidence backing your claim, such as dealer ad tear sheets from the local newspaper or copies of the KBB web page. Enclose a copy of the 1099-MISC as well. Needless to say you must file a paper return by mail.



If you simply claim a lesser amount than what is on the 1099-MISC, the IRS will come looking for the extra tax in 9 to 18 months or so. Any evidence proving your position will be even harder to secure then than it is now.I won car valued @25000. Actual dealer price 22649. Do i use selling price or FMV from KBB for taxable income?
You use MSRP. They will send you a 1099 anyway.
You'll use the dealer invoice price. The 1099 will have the value on it. It's unfortunate, because you cannot sell the car for the price at which you are being taxed on, even if you refuse delivery. But think of it as the option to buy a car for very very cheap. Personally, I'd sell it back to the dealer.I won car valued @25000. Actual dealer price 22649. Do i use selling price or FMV from KBB for taxable income?
I would use the actual dealer selling price.



FYI-KBB overvalues so you'd be better off using actual price. And it's verifiable, so you should have no issues.
the price the dealer would charge for you to drive it off the lot(if you were buying it)I won car valued @25000. Actual dealer price 22649. Do i use selling price or FMV from KBB for taxable income?
dealer price is irrelevant - you are going to get a 1099 or something stating the value of that prize (probably manufacturer's list price) and that is what you are going to have to pay income taxes on - state and federal - so I would plan on putting at least $6500-7500 away for taxes (depending on your tax bracket after adding$25,000 to your other income for the year you won the car) from whatever you sell it for - the balance is yours to do whatever you want to do with