Question: The TV show TMZ spoke with Larry Edema from Michigan

The TV show TMZ spoke with Larry Edema from Michigan, who was selected to be in the audience for Oprah's big giveaway: a free trip to Australia.
Supposedly, Winfrey had a certified public accountant on hand to address the tax issue right after the taping. Edema said that the CPA assured the group that all taxes associated with the trip would be "handled by the Oprah show"; so the trip would truly be 100% free. The CPA also explained that Oprah would cover all sightseeing costs and travel-related expenses, including passport costs for people who could not afford them. It was a big change from Oprah's 2004 controversy when she famously gave away brand-new cars but saddled audience members with as much as $7,000 in income taxes.
Discuss any tax aspects or problems with this statement.

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  • CreatedSeptember 09, 2015
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