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If I win a car from the UK in a contest, and they have me go to the dealership in the U.S. to pick out colors, style interior etc., and they send the dealership the money, what type of taxes must I pay in the United States, if any? I live in Tennessee.

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    Are you sure that this is not some kind of scam
    – Dheer
    Nov 22, 2015 at 11:15
  • @Dheer It's always good to be cautious, but if he is working with an actual local dealer, it's probably legitimate.
    – Ben Miller
    Nov 23, 2015 at 2:56
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    A word of caution: If you don't remember entering a contest or if they ask you for any money to claim your prize, it is a scam.
    – JohnFx ♦
    Nov 23, 2015 at 3:17
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    @BenMiller Agreed. I saw red flags when you win a lottery overseas and getting a car delivered locally.
    – Dheer
    Nov 23, 2015 at 10:25
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    He isn't "working with an actual dealer". The dealer may be completely uninvolved. All he has been told is to go to a dealer and choose a car/configuration; that has nothing to do with whether the money will actually be sent, costs a scammer nothing, and lends an entirely bogusbair of legitimacy to a highly quextionable proposition.
    – keshlam
    Nov 23, 2015 at 19:07

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You would be liable for Windfall Profits Tax, I believe. http://www.irs.com/articles/windfalls-and-your-taxes

But that's paid as part of your tax return, not to anyone else.

And yeah, there are very high odds you are being scammed.

(See also what happens if you win a car and then sell it?)

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  • It is a legit contest, the company is called Best of the Best, www.botb.com I actually know a guy who won a new Porsche Targa 4 and he took the cash option over the car. Within a week he had over 110k epos item in his account so I know it's legit I am just wondering if you took the car over the taxes how much would you have to pay in taxes if they are buying the car for you I the states?
    – Timothy Scott Rawlins
    Nov 24, 2015 at 21:30
  • if you're certain, see my answer above. However, with some scams money comes into your account but doesn't stay there .... if they ask you to pay anything for this, or overpay and ask you to send them the excess, you are being scammed.
    – keshlam
    Nov 24, 2015 at 21:40
  • The guy I know won in 2014, the company started in 2001, they gave a 0 complaint rating and have given away a car every week since 2001
    – Timothy Scott Rawlins
    Nov 26, 2015 at 17:57

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