Does luxury tax apply to a car I won?
July 14, 2003
Subject: Luxury tax question
Date: Wed, 02 Jul 2003
I won a $50,000 car in a drawing that I entered at the mall. What is the luxury tax on that? I know that in 1999 it was 6% but I'm sure it's changed. Also, is the luxury tax an additional tax you have to pay after you have paid for the other taxes on the car? I hope that made sense because I'm totally confused. Could you please advise? Thank you.
Date: Mon, 7 Jul 2003
There is no luxury tax on your car. The luxury tax expired, effective January 1, 2003.
For answers to new questions, subscribe to our newsletter, Michael Gray, CPA's Tax & Business Insight by filling out the form below.
Home Newsletter Archive Introducing Michael Gray, CPA Articles Tax FAQ Need Help? Other Links