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What do I do about this tax scenario?

This year I was a contestant on The Price is Right and I won some consolation prizes (a birdbath and a jewelry set of a necklace, earrings, and a ring) totaling $910 which I have to report as income. I ended up selling the birdbath for $300 on ebay, i sold the earrings for $15, and the ring and the necklace were given away as gifts. Do I report the total of the value of the prizes plus the amount I made as income or can I deduct the difference of what I received from the total value of the prizes and report it as that?

1 Answer

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  • Anonymous
    1 decade ago
    Favorite Answer

    The 1099-Misc you get in January will give you the amount to put on form 1040 line 21. This becomes your basis.

    Unless you sold the birdbath and earrings at a gain, you have nothing further to report. No deductions either.

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