Won a contest, should I accept?

[Dimsumkid]

I just got a breakdown sent 2 hours ago:
Botanic Garden:
Total $3383 (OLD) - Meal $645,Room Fee $1500,Tip $619, Oper Fee $344, Tax $275;
Total (NEW) $1200 - Boat Ride/Staffing $400, Picnic/Setup $800.

Arboretum:
Total (OLD) $5427 - Meal $1360,Smores $65,Setup $250,Rental Equip $167,Room Fee $3000,Tax $402;
Total(NEW) $1076 - Camp/Hike $222, Fishing $102, Staff cost $500, Picnic Dinner $187, Smores $65.

Most of the old charges were for indoor dining $8630! $2070 for food and $6560 for room rentals(+ setup, taxes, tips & staffing). We're talking 2 outdoor picnic baskets (prob. sandwiches and salads) for 6. Still, one picnic basket w/setup for $800 is still way over valued. The new grand total is ~$4800 ($2296 + $2520 cash). I think this is a much better valuation w/52% as cash and they're giving me another couple of days to decide since it took so long to get this information. We're thinking this is doable, does your opinion change?

 

[Bestwifeever]

You could still claim it on taxes for less than what they value it as; and deduct whatever it cost you to win the prize (raffle ticket, whatever), right? Nice that they will still give the same amount of $$ to reimburse of taxes for the new value (which is what, 20 percent of what the prize was originally supposed to be worth).

If your family will have fun with the activities, I think you definitely should now do it. This is the kind of thing my adult kids still remember doing, and yours will also love remembering that your family won it.

 

[Dimsumkid]

You could still claim it on taxes for less than what they value it as; and deduct whatever it cost you to win the prize (raffle ticket, whatever), right? Nice that they will still give the same amount of $$ to reimburse of taxes for the new value (which is what, 20 percent of what the prize was originally supposed to be worth).

If your family will have fun with the activities, I think you definitely should now do it. This is the kind of thing my adult kids still remember doing, and yours will also love remembering that your family won it.

This was a free contest we entered, no payment involved for entry. The only items I think that can be reduced would be the food items. I know of a really expensive local market that makes picnic baskets to go for concerts and the cost is < $25/person. I can't believe a basket of cold sandwiches,salad,soda and setup would come close to $150/person. Then the smores at a cost of $11/person..Amazon has a 36 ct Hershey's Smores kit for $20. Since the cash amount was specifically listed, they may be required to leave it as stated in the official rules. This will probably be our first attempt at camping and it'll be in on garden grounds and not true wilderness. We also don't have a lake home or a boat.

 

[MichaelB]

Even with the new valuations, if you believe they are too high you can declare a lower value to the IRS. The cash covers the tax liability, you are in the green, so what downside is there? Another (unrequested) vote to take it and enjoy.

 

[daylatedollarshort]

You have to so what works for you but devaluing the prize on your tax return seems like it might invite some extra scrutiny from the IRS. To me it wouldn't be worth the possible extra hassle. My opinion doesn't change. If it were me I'd pass.