Paying Taxes on a Vehicle win?

[Jeloco]

Hi, I was wondering if a person has to pay taxes when they win a new vehicle. I mean when they go to register it, will they expect the person to pay taxes on it? (In Saskatchewan). Thanks.

[cOmAtOaSt]

I believe you'll have to read the rules of that specific contest. I've seen some that only pay for the car itself, but some pay the entire cost, including freight, pdi, taxes, and all those other charges new car dealers luv to pass on to you.

[docvteg]

Imagine winning a Ferrari, then paying the taxes on that baby!

[TenzoR]

Imagine winning a Ferrari, then paying the taxes on that baby!

I wouldn't mind :)

[Sylvestre]

in Canada you don't pay taxes on lottery winnings - so you won't be expected to pay the taxes on the value of the car.
I would imagine though, if the lottery doesn't specifically pick up the licence and registration fee, you would be expected to pay that out of pocket.

[r1lee]

in Canada you don't pay taxes on lottery winnings - so you won't be expected to pay the taxes on the value of the car.
I would imagine though, if the lottery doesn't specifically pick up the licence and registration fee, you would be expected to pay that out of pocket.

Is this a contest or a gov't sponsored lottery?

[Andro]

Imagine winning a Ferrari, then paying the taxes on that baby!

considering you can sell it after for way more i don't think that's big deal.

[lolaleelolo]

i won a 1 year lease on a car in ontario and the only costs associated with it were plates, registration and insurance...well, and of course gas...
but otherwise, the vehicle was free!
do read the rules though, never know sometimes they throw some crazy things in there...
LLL

[gheart008]

in Canada you don't pay taxes on lottery winnings - so you won't be expected to pay the taxes on the value of the car.
I would imagine though, if the lottery doesn't specifically pick up the licence and registration fee, you would be expected to pay that out of pocket.

only applies to government run lotteries. Anything else like car manufacturer's contest, you will probably have to pax taxes.

[gheart008]

i won a 1 year lease on a car in ontario and the only costs associated with it were plates, registration and insurance...well, and of course gas...
but otherwise, the vehicle was free!
do read the rules though, never know sometimes they throw some crazy things in there...
LLL

it's a 1 year lease, so the vehicle isn't yours.

[chriswalsh]

it's a 1 year lease, so the vehicle isn't yours.

But there would probably still be taxes to be paid (ie tax on the lease).

I think the people you win from usually pay taxes for you.... I won a truck and McDonalds/Ford paid for everything except lisence & plates.

[wong8egg]

Imagine winning a Ferrari, then paying the taxes on that baby!

Anything you win is a gain, the only thing you should concern is the resell value.

[Rehan]

in Canada you don't pay taxes on lottery winnings - so you won't be expected to pay the taxes on the value of the car. That's right. If the winnings are not part of your employment and they're not a business venture, then you don't have to pay tax on them. Here's the CRA bulletin with more details:
http://www.cra-arc.gc.ca/E/pub/tp/it213r/it213r-e.html

And here's some news about a recent court ruling about winnings ($5 million!!) from sports lotteries like Proline:
http://www.canada.com/ottawacitizen/news/city/story.html?id=74e47320-ecf5-496d-a23f-e6440ece5134