Would You Rather Have 100k In Cash Or 100k In Gold?

RJK I'm not sure on all the tax laws either, but I would assume whatever option you pick they would just give you the full 100k and leave any tax obligations to you as opposed to making their taxes more complicated

Re taxes - just in case anybody actually wins this thing...

1. The TV show will most likely not do any withholding for you. They'll hand you the prize and leave you to deal w/ IRS & your own state/city by yourself.
2. There'll be federal income tax & state income tax (if you're in an income tax state, which most of us are) due on the prize (which is treated as earned income).
3. If/when you sell any part of the prize, you'll then be looking @ a capital gains tax situation. That's an entirely separate, different matter. You'll get hit both coming and going.
4. If you do actually win this thing...DO get tax guidance from a qualified pro. A tax-specialist CPA is best. Going with the "storefront tax preparers" who advertise on TV and litter the landscape with their presence might not be the best idea for a potentially complex situation such as a prize like this. Could end up being like shooting yourself in the foot with a 12 gauge.

I spent a large part of my life working for a certain well-known govt agency in the tax biz & saw too many people do the 12ga-in-the-foot-thing when they won a prize or got an inheritance. The only good advice is "get guidance from a qualified pro." Thus endeth today's sermon.

DNA hit it on the head!

I'll take the gold. With $100k Feds and state will take almost half. Taxes will be due next April, the gold will most likely be worth more by next April so will sell what is need for the taxes.

Cash. If I want some gold, I can buy it with that cash.

I never did get to see the episode, who won?

silvercoinrn - Don't underestimate the appetite of IRS & the state tax depts. When you win a prize from any 'above-board' contest like this one, the entity that gave out the prizes is required to report the prize values and names, addresses, & SS#s of winners to the IRS.

Whatever you won is considered to be taxable income and will be treated as such - just like a paycheck. It doesn't matter whether you won cash, a car, gold or a pile of clay.

They're very helpful, though. You don't even have to contact them. They'll contact you - with a bill that'll include penalty & interest charges, since you didn't file the legally required return (with payment of the tax due) on time.

If I won, I would choose the cash. Easy enough to convert it into gold if I wanted to. I'd just as soon spend it on something I need more, like a new car, rather than holding onto it.