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Many of you recall that last month I had my name drawn in the Maryland Fishing Challenge awards ceremony to be one of the five finalists. I came to the stage and stood behind one of five tackle bags on the table. It turned out that I had chosen the bag containing the grand prize -- an award certificate for a Tracker bass boat, motor, and trailer package. It was a completely surprising moment without precedent in my life. I appreciated all the complimentary remarks and congratulations I received from the Snagged Line community at that time. Plus, during the same week, Native Watercraft agreed to send me a new Manta Ray 14 to replace the one I had that had developed significant cracks in the seating area. I recall aesiegel commenting about my "good mojo".
Before going any further, I want to make sure to thank Bass Pro Shops and Tracker boats for their support of the Maryland Fishing Challenge and for donating such a significant prize to the awards ceremony. It was an honor to be the recipient. The rest of the story should not in any way reflect on their generosity -- rather it describes a reality check.
That was on Sept 8. The next six weeks have been interesting, to say the least -- I often questioned how strong the mojo really was. I knew immediately that I personally had no need for a 16 ft bass boat. I already owned a 16 ft center console that matched my fishing needs better than the Tracker did. I was aware that I would have some tax responsibility for winning a large prize, whether I kept the boat or not. I spoke with an accountant to clarify what I needed to consider. I also spoke with the boat department manager at Bass Pro Shops to make sure I understood what came with the package and what I would need to pay to take delivery of the boat.
When all was said and done, the numbers did not look as good as I had originally hoped. Upon delivery, I would owe sales tax, freight from the manufacturer to Bass Pro, rigging, and titling charges. I would need to add the full value of the package to my income for 2011, thereby raising the amount of income tax I would owe next year. Finally, once I had the boat and went to re-sell it, I would not be able to sell it at the same price as a dealer -- I would need to sell it at some discount.
Taking all that into account, I posted it for sale on Craigs List and on Tidalfish. I had no serious offers but did get several scammers through Craigslist. After several weeks I talked to a boat broker that had received good reviews on Tidalfish. To that man's credit, he was very honest with me and suggested that I could do just as well selling it on my own without using his services. So I lowered the asking price and tried posting it on several other fishing sites.
Eventually I did get a buyer, and we completed the transfer of the Tracker this morning. Without going into actual prices, when I consider my tax obligations and the sales discount, I walked away with only about 20% of the value of the package. This is still a wonderful prize, but it is considerably smaller than what I had initially anticipated on the day I won the award.
I am posting this not to complain about my reduced winnings -- after all, any winnings are a bonus. I do want to let all of you know that there really is no free lunch. If any of you are fortunate enough to win a prize in a drawing, contest, game show, etc., it is very important to evaluate all the hidden costs and obligations before getting too carried away.
Half an hour after returning home from the boat sale, I received a phone call from Annapolis Canoe and Kayak, the dealer where I had bought the Manta Ray in 2008. They are the ones who found the cracks on my 2008 Manta Ray and took the initiative to contact the manufacturer on my behalf. A few days later, they called me to say that Native would send me a replacement kayak of the same model. The call I received this morning was notification from the shop that my new Manta Ray had arrived (they don't make it in a dark blue color any more, so I selected an orange color called "mango").
I picked it up this afternoon and had to test out its fish-catching capabilities. I am pleased to report that I was successful in bringing several perch and rockfish over the side in its first outing in Spa Creek. I plan to install three Scotty rod holders and a fishfinder over the weekend to get it rigged like the previous one. I want to publicly thank Annapolis Canoe and Kayak for being very proactive for me in getting the Manta Ray replaced. The outcome exceeded my expectations.
Before going any further, I want to make sure to thank Bass Pro Shops and Tracker boats for their support of the Maryland Fishing Challenge and for donating such a significant prize to the awards ceremony. It was an honor to be the recipient. The rest of the story should not in any way reflect on their generosity -- rather it describes a reality check.
That was on Sept 8. The next six weeks have been interesting, to say the least -- I often questioned how strong the mojo really was. I knew immediately that I personally had no need for a 16 ft bass boat. I already owned a 16 ft center console that matched my fishing needs better than the Tracker did. I was aware that I would have some tax responsibility for winning a large prize, whether I kept the boat or not. I spoke with an accountant to clarify what I needed to consider. I also spoke with the boat department manager at Bass Pro Shops to make sure I understood what came with the package and what I would need to pay to take delivery of the boat.
When all was said and done, the numbers did not look as good as I had originally hoped. Upon delivery, I would owe sales tax, freight from the manufacturer to Bass Pro, rigging, and titling charges. I would need to add the full value of the package to my income for 2011, thereby raising the amount of income tax I would owe next year. Finally, once I had the boat and went to re-sell it, I would not be able to sell it at the same price as a dealer -- I would need to sell it at some discount.
Taking all that into account, I posted it for sale on Craigs List and on Tidalfish. I had no serious offers but did get several scammers through Craigslist. After several weeks I talked to a boat broker that had received good reviews on Tidalfish. To that man's credit, he was very honest with me and suggested that I could do just as well selling it on my own without using his services. So I lowered the asking price and tried posting it on several other fishing sites.
Eventually I did get a buyer, and we completed the transfer of the Tracker this morning. Without going into actual prices, when I consider my tax obligations and the sales discount, I walked away with only about 20% of the value of the package. This is still a wonderful prize, but it is considerably smaller than what I had initially anticipated on the day I won the award.
I am posting this not to complain about my reduced winnings -- after all, any winnings are a bonus. I do want to let all of you know that there really is no free lunch. If any of you are fortunate enough to win a prize in a drawing, contest, game show, etc., it is very important to evaluate all the hidden costs and obligations before getting too carried away.
Half an hour after returning home from the boat sale, I received a phone call from Annapolis Canoe and Kayak, the dealer where I had bought the Manta Ray in 2008. They are the ones who found the cracks on my 2008 Manta Ray and took the initiative to contact the manufacturer on my behalf. A few days later, they called me to say that Native would send me a replacement kayak of the same model. The call I received this morning was notification from the shop that my new Manta Ray had arrived (they don't make it in a dark blue color any more, so I selected an orange color called "mango").
I picked it up this afternoon and had to test out its fish-catching capabilities. I am pleased to report that I was successful in bringing several perch and rockfish over the side in its first outing in Spa Creek. I plan to install three Scotty rod holders and a fishfinder over the weekend to get it rigged like the previous one. I want to publicly thank Annapolis Canoe and Kayak for being very proactive for me in getting the Manta Ray replaced. The outcome exceeded my expectations.
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