View Full Version : The Price is WRONG
ThomasM
09-22-09, 05:24 PM
I was watching the season premiere of "The Price is Right" on CBS and got a big kick out of one of the prizes the 4 contestants had to bid on--a DirecTV system!!
Yup, they had an 18" round dish, a D12, and a remote and the announcer said it included "a year of the Family Package". Whoppee!!! ;)
I couldn't believe it when they announced the "actual retail price" of $634!!
I added up FAMILY ($29.95 x 12 = $359.40) and the price of an SD receiver ($69) and NO WAY did it add up to over $600.
What kind of a scam is this??? :p
PS: Drew Carey kept saying "I love DirecTV" over and over-I wonder if he even HAS DirecTV at his house!
LarryFlowers
09-22-09, 05:37 PM
I was watching the season premiere of "The Price is Right" on CBS and got a big kick out of one of the prizes the 4 contestants had to bid on--a DirecTV system!!
Yup, they had an 18" round dish, a D12, and a remote and the announcer said it included "a year of the Family Package". Whoppee!!! ;)
I couldn't believe it when they announced the "actual retail price" of $634!!
I added up FAMILY ($29.95 x 12 = $359.40) and the price of an SD receiver ($69) and NO WAY did it add up to over $600.
What kind of a scam is this??? :p
PS: Drew Carey kept saying "I love DirecTV" over and over-I wonder if he even HAS DirecTV at his house!
Remember that all prices on a game show must be the full manufacturers suggested retail price, a price that frequently has no basis in reality. Game show scandals from long ago resulted in "standards" that have to be adhered to. If you see a car on a game show it will be priced at full sticker. No one pays full sticker, but that's the rules.
ThomasM
09-22-09, 05:43 PM
Remember that all prices on a game show must be the full manufacturers suggested retail price, a price that frequently has no basis in reality. Game show scandals from long ago resulted in "standards" that have to be adhered to. If you see a car on a game show it will be priced at full sticker. No one pays full sticker, but that's the rules.
I thought of that. I wonder if the "actual retail price" of a D12 is $279 :confused:
Equivalent SD single-room receivers with similar features sold for less than $100 back in the pre-lease days....
cariera
09-22-09, 07:13 PM
Maybe they are assigning a $ value to the installation?:)
kevinturcotte
09-22-09, 07:19 PM
Maybe they are assigning a $ value to the installation?:)
That was my thought. Plus I was figured actual purchase price of the receiver, not lease.
Didn't Drew used to promote Directv?
dpeters11
09-22-09, 07:32 PM
That was my thought. Plus I was figured actual purchase price of the receiver, not lease.
Didn't Drew used to promote Directv?
I seem to remember him in Sunday Ticket ads. I know he isn't with DirecTV anymore, but is Drew related in any way to Chase Carey?
lee78221
09-22-09, 07:57 PM
When did this air?
Shades228
09-22-09, 08:45 PM
FAMILY ($29.95 x 12 = $359.40) as you stated
Standard Receiver: $149
Satellite Dish: $$
Installation: $$
You can divy up the rest of the money as you see fit.
JoeTheDragon
09-22-09, 10:46 PM
I was watching the season premiere of "The Price is Right" on CBS and got a big kick out of one of the prizes the 4 contestants had to bid on--a DirecTV system!!
Yup, they had an 18" round dish, a D12, and a remote and the announcer said it included "a year of the Family Package". Whoppee!!! ;)
I couldn't believe it when they announced the "actual retail price" of $634!!
I added up FAMILY ($29.95 x 12 = $359.40) and the price of an SD receiver ($69) and NO WAY did it add up to over $600.
What kind of a scam is this??? :p
PS: Drew Carey kept saying "I love DirecTV" over and over-I wonder if he even HAS DirecTV at his house!
If you did win that can you upgarde to a hd pack / higher level and still $30 off for 12 /m and or have that added to what you have now.
LOCODUDE
09-22-09, 11:14 PM
Quite possible..... :)
The retail prices used on the game shows are supplied by the manufacturers.
The retail prices used on the game shows are supplied by the manufacturers.
And reported to the IRS for the winners. You end up paying income tax on the winnings, based on the retail price.
Hutchinshouse
09-23-09, 08:42 AM
The thread title made me think of this great movie moment. :lol:
Sandler says to Barker: "The price is wrong bit*h......"
goober22
09-23-09, 10:20 AM
And reported to the IRS for the winners. You end up paying income tax on the winnings, based on the retail price.
Yep, here is a link to a story on tax and even has a Drew Carey PiR bit in it. :)
"Sometimes, the price isn't always right."
http://www.mortgageloan.com/game-show-earnings-a-taxing-situation-1638
The thread title made me think of this great movie moment. :lol:
Sandler says to Barker: "The price is wrong bit*h......"
First thing I thought as well! :lol:
trainman
09-23-09, 11:12 AM
And reported to the IRS for the winners. You end up paying income tax on the winnings, based on the retail price.
Also reported to the California Franchise Tax Board -- yes, game show winners (on California-based shows) also get to pay California income tax on their winnings.
Incidentally, contestants on "The Price Is Right" do have the opportunity to turn down the prizes they won on the show -- so, for example, if the person who won the DirecTV system lives in an apartment that faces north, they don't have to pay taxes on something they can't use.
And reported to the IRS for the winners. You end up paying income tax on the winnings, based on the retail price.
It's income. I think they only have to report it if it's over $10,000 like at the track or casinos. But, that doesn't mean it's not supposed to be reported. Hey, you're supposed to report the $2 you win in the lottery too.
The Merg
09-23-09, 11:20 AM
Also reported to the California Franchise Tax Board -- yes, game show winners (on California-based shows) also get to pay California income tax on their winnings.
Not completely accurate. My wife paid federal income taxes on her earnings, but we did not pay to CA. We use a very good accountant and specifically confirmed with him that we didn't need to do that. I believe we did have to declare it to our state though.
- Merg
spartanstew
09-23-09, 12:14 PM
The thread title made me think of this great movie moment. :lol:
Adam Sandler has never had a great movie moment.
ChrisPC
09-23-09, 12:18 PM
PS: Drew Carey kept saying "I love DirecTV" over and over-I wonder if he even HAS DirecTV at his house!
I remember reading about 10-12 years ago that he personally had DirecTV.
bjdotson
09-23-09, 02:34 PM
Yep, here is a link to a story on tax and even has a Drew Carey PiR bit in it. :)
"Sometimes, the price isn't always right."
http://www.mortgageloan.com/game-show-earnings-a-taxing-situation-1638
First thing I thought as well! :lol:
As somebody that enters sweepstakes as a hobby, there are at least three things wrong with that article.
1. It states that anything $600 or more is taxed as income. Truth is that ANYTHING won is taxed as income (unless it is a logoed item worth $10 or less). The sponsor of the contest is required to send a 1099-misc for any wins over $599, but can send one at any amount. If they do not issue a 1099 you still owe the tax, but you are on the honor system.
2. 50% tax is ridiculous. Look at your last years tax returns, add the amount of the win and figure what you would owe with the additional income. Unless you win a few thousand, it probably wouldn't even change your tax bracket.
3. While the sponsor will issue the 1099 for what they figure the market value is; You are only required to pay tax on the FMV (the fair market value) If you can document that the FMV is significantly lower than the ARV (approximate retail value) you pay the taxes on the FMV. The IRS accepts ads and quotes as documentation.
One year I won $17,000 and still got a refund. Most of it was wiped out of course and I was making a lot less then, but you get the idea.
hdtvfan0001
09-23-09, 02:36 PM
Funny you mentioned this....my wife and I attended the "Price is Right" show in Las Vegas (Bally's), which is very similar to the TV version.
The must have stressed "actual manufacturer's retail price" 100 times in a 90 minutes span when talking about guessing prices.
So I guess the price could be right (or wrong), depending on what that magical "retail" number is....
rudeney
09-23-09, 02:59 PM
50% tax is ridiculous. Look at your last years tax returns, add the amount of the win and figure what you would owe with the additional income. Unless you win a few thousand, it probably wouldn't even change your tax bracket.
I remember having this discussion once with a coworker. Worst case is that you win enough that when combined with your regular income, you are put into the highest tax bracket. Then you have to worry about the AMT and a few other things. I put some hypothetical numbers into TurboTax and came up with something around 42% (federal tax only) had I won $1M. If someone was going to win enough to clear $1M after taxes, it would have to be around $1.6M gross, and I think that's where people quickly forget their math lessons and think the tax is over 50%.
While the sponsor will issue the 1099 for what they figure the market value is; You are only required to pay tax on the FMV (the fair market value) If you can document that the FMV is significantly lower than the ARV (approximate retail value) you pay the taxes on the FMV. The IRS accepts ads and quotes as documentation.
A friend won a Corvette in a raffle. He ended up selling it (for about 30% under MSRP) and then he only had to pay taxes based on the proceeds.
trainman
09-24-09, 10:53 AM
Not completely accurate. My wife paid federal income taxes on her earnings, but we did not pay to CA. We use a very good accountant and specifically confirmed with him that we didn't need to do that. I believe we did have to declare it to our state though.
Okay, perhaps I should have phrased it as "are responsible for" California income tax. I hope California did get something from you somehow -- frankly, we need the money. :D
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