BRS $65,000 Dream Reef Giveaway!

[Auquanut]

WOW!! This is awesome! If only the stand matched my décor. Wait! It matches perfectly!! Not getting my hopes up, but yeah. My hopes are WAY UP!

 

[BroccoliFarmer]

This would not be considered a gift for gift tax consideration. You will be paying taxes on this

 

[GuppyHJD]

This is fun to watch. Great tank stand Neptune gear and who knows what else.

Time to fill the tank with water?

 

[BeltedCoyote]

This would not be considered a gift for gift tax consideration. You will be paying taxes on this

I did not say what you have as a quote credited to me. So what’s up with that

 

[tharbin]

Time to fill the tank with water?

I wouldn't be against it

 

[BroccoliFarmer]

I did not say what you have as a quote credited to me. So what’s up with that

sorry man..i will edit the post. darn iphone. sorry about that

 

[BeltedCoyote]

sorry man..i will edit the post. darn iphone. sorry about that

all good. I feel the iPhone pain. Smart as any phone until I hop on here

 

[Spartan1218]

I am following this amazing setup just so that I can see what winds up in it. This looks like it will be pretty incredible.

 

[reefiniteasy]

Doesn’t the federal govt. take like 24% or something like that on prizes over $5,000 based on their stated value. So taxes can be upwards of $15,000. I don’t have much knowledge of this type of stuff but I do know I don’t have that kind of cash.

 

[Staghorn]

The donor pays federal gift tax. And by the way there’s a $15,000 exemption this year. But that doesn’t mean in anyway I’m against it. Please send it my way.

 

[OrchidMiss]

Is part of the prize having someone come over and show you how to use all that fancy equipment? Because I would definitely need it! Haha

Right?!?!

 

[reefiniteasy]

The donor pays federal gift tax. And by the way there’s a $15,000 exemption this year. But that doesn’t mean in anyway I’m against it. Please send it my way.

They are doing this as a “gift?”

 

[vetteguy53081]

Merry Xmas to me

 

[BroccoliFarmer]

The donor pays federal gift tax. And by the way there’s a $15,000 exemption this year. But that doesn’t mean in anyway I’m against it. Please send it my way.

Although you are correct that the donor is the one that pays gift tax, this is not a gift. This is a promotional event which does not count as a gift for federal gift tax purposes. The recipient would be responsible for the tax as part of their ordinary income. Now BRS may be paying part of that by saying part of the 65k is being used to actually cover the tax (roughly they give a 40k giveaway and an additional 25k in cash to cover the tax bill). But whomever keeps saying that the winner does not have to pay taxes..please stop. Unless BRS indicates they are covering the taxes, which they have not, the winner will be on the hook.

 

[Gtinnel]

Notice they are calling it a "gift" in th video. I know Ohio doesn't have a gift tax, but there is a federal one.

Federal law allows up to 15k to be given as a gift tax free. After the 15k it is subject to taxes, but the 'giver' typically pays the taxes not the 'giftee'

So maybe BRS is paying that tax for the extra 50k over the limit?

Also not sure how 'gifts' work for business what I referenced above is personal use, so amounts/regulations/taxes maybe different when it's a business giving the 'gift' and not say your rich uncle.

I'm possible wrong, but I believe a gift tax is from individual to individual.

I tend to trust @BroccoliFarmer since his previous user name was NJTaxMan. I'm going to take a random guess that his job involves dealing with taxes.

 

[Woodyman]

I'm possible wrong, but I believe a gift tax is from individual to individual.

I tend to trust @BroccoliFarmer since his previous user name was NJTaxMan. I'm going to take a random guess that his job involves dealing with taxes.

That's why I threw in that disclaimer, I don't mess with my own taxes so I am in no way giving any tax advice.

Corporations can give gifts, but I don't know how the taxes of all that works, so best to speak to a tax pro.

I was just stating that BRS did refer to it as a 'gift' several times which is how Canadian reefers are also eligible this time and not just US reefers. They made sure to make it known in the video it was a 'gift' and not a prize.

It will be interesting to see how this plays out over the next few days, and hopefully BRS helps out the winner with said taxes.

 

[BroccoliFarmer]

That's why I threw in that disclaimer, I don't mess with my own taxes so I am in no way giving any tax advice.

I was just stating that BRS did refer to it as a 'gift' several times which is how Canadian reefers are also eligible this time and not just US reefers. They made sure to make it known in the video it was a 'gift' and not a prize.

It will be interesting to see how this plays out over the next few days, and hopefully BRS helps out the winner with said taxes.

I am an enrolled agent with the IRS and a partner in a major CPA firm's tax practice. I come from a position of knowledge on this situation. I just would hate to see people get the wrong understanding on this and get stuck with a pretty hefty tax bill that they were not expecting. I could actually see the situation where someone unprepared for the tax consequences having to say 'no thank you' to such a generous prize. Maybe @Bulk Reef Supply should contemplate this...maybe they already have.

 

[MrTPlush]

Not saying it is, but it is pretty common for places to do giveaways like this that have sketchy resale value so once the winner realizes the tax bill they have to decline the prize. They get all the publicity for free in the end.

 

[Bulk Reef Supply Verified Sponsor]

Super cool!

@Bulk Reef Supply: Out of curiosity, how do taxes on this work for the recipient?

We've got a plan for those pesky taxes, so no need to even discuss it. Ryan and Randy will explain more on a future livestream Let's get back to dreaming what it would be like to have this reef in your house!

 

[MrTPlush]

We've got a plan for those pesky taxes, so no need to even discuss it. Ryan and Randy will explain more on a future livestream Let's get back to dreaming what it would be like to have this reef in your house!

Thanks for your response to the thread!