I entered a draw and won. I have no use for the product but my boss does. He offered to buy it from me. Will that amount be taxed as income?
If the prize won has increased in value from the day you won it til when you sold it, you should declare the increase in value as a capital gain. ie if you win a $20,000 car and sell it for $20,000 theres no tax owed. If you win a $1000 piano and sell it in a year for $1500, there would be a $500 taxable gain.
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