I think she’s regretting that now. The taxes on her pink and lime green Escalade? $25,000. “I’m going to sell my truck, but that’s not going to cover it, so I’m freaking out.” The Escalade includes 7 LCD screens, an Xbox 360, and a 3000-watt stereo with six subwoofers.
25 Responses
Rob
1November 22nd, 2006 at 7:47 pm
There are two ways to look at this…
- An innocent mistake by Endemol and/or NBC, not thinking about the tax implications of the prize. It would not be the end of the world if either company “grossed up” her prize with enough cash to cover the tax on the truck (and work it out so that any tax on the cash pays for itself).
- A really sleazy way to send her off with nothing, if you believe they deliberately waved the truck in front of her, knowing she’d take it and then have to forfeit it because she couldn’t pay the taxes.
I’m hoping it’s #1.
In this day and age, I can’t rule out #2.
Mike
2November 22nd, 2006 at 7:57 pm
or C) Zanny didn’t consider the tax implications. She’s 20. Like any 20-year-old being offered their dream drive would think “Should I pass this up because it’ll be a tax burden?”
Rob
3November 22nd, 2006 at 8:19 pm
I kind of factored that into both.
Of course, she didn’t figure the tax implications — and Endemol/NBC would have known from the outset that she wouldn’t stop long enough to figure the tax implications. Hell, we ALL knew she was going to be offered a truck sometime during the game… any time they make it a point to emphasize someone’s dream prize, you’re GOING to see it.
Which turns it back on Endemol/NBC.
You don’t give a non-cash prize in what is typically a cash game — without making provisions for the tax hit — unless you’re (a) careless or (b) cynical.
I’d prefer to think it’s “careless”… I just hope it’s not “cynical”.
Jordan Hass
4November 22nd, 2006 at 9:25 pm
THE BANKER STRIKES AGAIN!
Darren
5November 22nd, 2006 at 11:21 pm
I vote for careless as well. It doesn’t do Endemol any good to “send her off with nothing”. Endemol still has to come up with the car to give her, after all. It’s still costing them *something,* whether that’s money or goodwill with whatever manufacturer/dealership ponied up the thing.
Since it’s not an issue in Canada, where I’m from (a. darn few decent game shows to go on, and b. tax-free winnings, baby!), do contestant coordinators warn people of this in advance on US game shows?
Intelligentfan777
6November 22nd, 2006 at 11:34 pm
Well, in a way this makes the whole pony deal from season 1 look a little less bad. At least the contestant won some money to pay for the expenses and such. This girl unfortunately is paying the consequences after the fact. Oh, and in my opinion, not all 20 year olds would have thought the way she did in the moment.
I hope Endemol/NBC realizes this mistake and never does it again. By that I mean, don’t offer a non-cash prize unless there is some significant CASH to go with it. Most of there non-cash prize offers have had a good money offer attached to it, so should the player take it (which thankfully is rare, in spite of Zanny) at least that person walks away knowing they can keep the prize and do other various things their winnings.
And thus, we have what I call The “$ALE OF THE CENTURY” theory.
Prizes are great, no doubt about it. But your chances of holding onto those prizes you’ve always wanted is much better if you win a significant amount of money as well. Therefore I doubt, any of the LOT winners on $ale have anything to complain about. For future contestants, this theory is a wise one to follow.
macnbc
7November 23rd, 2006 at 12:24 am
What I don’t think most people realize is that this is true for just about all game shows with prizes.
Do you really think most of those contestants on The Price is Right keep those cars after they win them? I’m willing to bet the vast majority sell them.
David
8November 23rd, 2006 at 2:41 am
Tell me about it. I don’t care if I needed a car, if I win a Focus on TPiR, it’s going right on eBay.
KP
9November 23rd, 2006 at 4:53 am
Regarding why the offer might have been car-only…
they mentioned the value. $83,000 and change. You had six cases left - $50k, $500k and four on the left side, I think. Mean there is about $93k, which would normally translate into a $60-65k offer at the six-case point. It was not - in my opinion - a board worth $83k, regardless of what form that $83k took. Though it was below the mean so still justifiable.
I wouldn’t be surprised if they got the product placement deal with Cadillac dealt with (haha) well before recording, maybe very soon after Zanny was chosen as a contestant, and planned to make it as an offer at some point. They probably wanted to make it as a cash+car offer similar to that with the Hummer, but perhaps rushed out the car-only offer once the game was one case away from a disaster (and of course, she DID hit $500k next case) to make sure that the car did get to appear. I wouldn’t be at all surprised if they planned a cash+car offer for the eight-case point if she had kept the $500k and $750k.
Anyway. I honestly wonder whether the idea of US game show prizes being treated as taxable income might change. Several other countries (including the UK and Australia) don’t tax game show winnings, and I would not be surprised if this brings the prospect at least into consideration. The idea of ‘what you see is what you get’ makes a lot of sense to me.
Oh, evidence for cynicism: the first two occasions in which a non-cash prize was offered, the player’s case contained the highest sum on the board at that point.
Doug Morris
10November 23rd, 2006 at 5:48 am
Sorry if this goes off-topic. Just some food for thought.
A few weeks before this episode, I bought a ticket for a raffle. Grand prize is a Pontiac G6. Should I win, I’m sure I’ll have to report this to Uncle Sam.
I would think somewhere along the line, a DOND staffer told contestants something along the lines of, “If you close a deal worth more than $600, you’ll have to report your winnings to the IRS.”
David
11November 23rd, 2006 at 7:31 am
I’ll give Endemol/NBC the benefit of the doubt on this one (they spent the time looking for the thing, and they realized that that was probably the last shot they would have at offering the car because of the board situation)….In the heat of the moment of the game, I doubt she even considered the tax implications at the time. Still sucks tho…
Bob
12November 23rd, 2006 at 11:00 am
Wait until the registration comes due and insurance to see how much more this “gift” will cost. Sell the car. The first scratch will break your heart anyway.
Scott Meckley
13November 23rd, 2006 at 7:59 pm
I think that winnings you get on a television game show shouldn’t be taxed because im not saying that getting a job isnt hard but it seems easier than becoming a contestant on a game show because you have thousands or even millions of people try out for game shows and only few get on and the way i look at it is if you make it on a game show your winnings shouldn’t be taxed.
KP
14November 24th, 2006 at 2:36 am
I agree for a different reason…
…I believe that what you see should be what you get.
But then, I’ve been bought up in the UK where what you see IS what you get on television game shows.
Marc Power
15November 24th, 2006 at 8:10 am
any tax attorneys/experts here? there’s gotta be some sort of loophole. like say if she donated
it to a charity and they raffled for it. wouldn’t be a charitable deduction?
But I’m surprised that afterwards the producers didn’t think of offering her the cash equivalent. at least then they cover their hinds and Zanny still would have had about $56,000 after taxes if my math is right.
Measles!
16November 24th, 2006 at 9:10 am
The way I see it, she got exactly what she deserves. If you go in not knowing the potential tax implications. Basically if you don’t know what the bloody hell you’re doing, you deserve to get absolutely nothing. It may sound heartless, but that’s the way the world is. I love the show, but the government always wins in the end.
*SPOILER* Sorry if it’s not allowed, but some young woman just won a Dodge Viper on today’s Price is Right. There’s a heavy tax burden right there. *SPOILER*
James
17November 24th, 2006 at 11:09 am
I can’t blame Endemol/DOND on this either. When you are prepped for a game show the day of a taping, you are told about the potential tax implications from someone affiliated with the show (contestant coordinator/lawyer/producer).
Every show I have been on, I have been told that if I win something, you have to sign a tax form before you leave the studio, and you better expect a statement from the production company come tax time.
My guess is Ms. Henseler didn’t realize what was going on in the heat of the moment, and she thought with her heart rather than her head. Given some of the media attention she is getting with her Escalade win (through her local press as well as this site), maybe DoND/Endemol will substitute the cash equivalent of the Escalade, especially since she’s a struggling college student.
From what I’ve read, it seems as if Ms. Henseler is a hard-working young woman with a good attitude who, unfortunately, learned a life lesson at an inopportune time. With her work ethic and positive attitude, she’ll bounce back from this.
KP
18November 24th, 2006 at 12:37 pm
It might not have helped that they quoted an 80k+ value for the prize when it was probably really worth 60k if she had to sell it on - the board was worth somewhere between those two values for sure.
Andrew
19November 24th, 2006 at 1:00 pm
when i go on dond (and that takes precedence over a bob-less tpir :-(), taxes will DEFINITELY affect decisions. i will want to get a car, but i will need enough for a house. how good of a car it is will depend on the winnings. paying attention to statistics will DEFINITELY help me pick a good-value briefcase, and i’ve GOT THE BALLS TO RISK IT ALL! at the minimum, i’m hoping for a LOTUS ELISE. sporty car! only four cylinders, but still stupid fast because it’s less than a ton! a big win could give me a MASERATI and plenty left over for a house. it would be nice to have a PORSCHE 911 TURBO - not as nice looking as a bentley, but SUPER FAST - if i win the million, with about $430k left for a house and HER car (after taxes). i would also like to get a full set of briefcases to do the show at home with!
Nick Todor
20November 24th, 2006 at 5:03 pm
Measles, it doesn’t really matter if you spoil that or not. Today’s Price is Right was a repeat.
Measles!
21November 24th, 2006 at 11:15 pm
Still. That Viper is a big tax burden. It pretains to the subject :P
DJ Richardson
22November 25th, 2006 at 8:54 am
So, am I hearing this right… if a contestant goes on a game show and wins something, whether a toaster or a luxury Cadillac, they should not be taxed…but those of us who work at jobs we detest have to have our wages taxed up to 40% ny the feds, states, and localities?
Game show wins should be taxed like everything else. She made her decision, a bad one, turns out.
Zanny (the contestant)
23March 14th, 2007 at 6:16 pm
I knew about the taxes before i went on the show. I went on the show to win an Escalade not money. I got what i wanted you are missing the point. And NBC went out of their way to make it happen for me. To me it was the best deal i could get. ive been saving for a lime green Escalade for years so get a clue, the deal rocked.
CHERYL JACKSON
24December 29th, 2007 at 8:11 pm
Zanny,
Where do I send money to help you? I won Five dollars on DOND but I will send more than that to you!
Cheryl
Tye Male
25December 31st, 2007 at 2:44 pm
Hey Zan! I too was one of the people who couldn’t figure out why you would take the caddy knowing about the taxes. I’m glad you shared your story. I’m also glad you got the Escalade. You were a pleasure to watch and very entertaining. Rock on!!!
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