Grandma's House

Remember the other day when I said I wouldn't mind if someone, like Oprah, gave me a new car? Well, never mind.

From Gut Rumbles:

The cars are valued from $21,000 to a maximum of $28,000 depending upon options selected, and Pontiac says that they will be paying the state sales taxes and license fees for each car. The total value of the car, taxes, and fees paid will be included on an IRS form 1099 for each recipient who will then have to file an esitmated federal return and make payment of the taxes due. A car worth say $25,000 at 7% sales tax = $1750, plus est. license fees of $500 would result in a taxable gain of $27,250 reported on the form 1099 and at the 28% tax rate equals a federal tax of over $7600 due on filing. Oh, and don't forget the insurance premium on the new car as well.

I can't afford for anyone to be that nice to me. Thanks anyway.