On 3/18/2013 9:13 PM, Charles wrote:
In article ,
wrote:

Free cruise, heh? I've always wondered about those. Don't you have to pay
tax on that? Ordinary income? Taxed on the suggested retail price, not
heavily discounted price everyone else pays, right? How much do you figure
this free trip costs?

That would be if the cruise was won in a contest. A coworker won such a
contest and the cruise tax was based on brochure rate which meant he
ended up paying two thirds as much in taxes that he would have paid if
he had booked the cruise at the actual going fare. He came out a little
ahead. In Brian's case I think it is a gift. She can probably gift him
up to $11,000.

Travel agents can typically sail at deeply discounted prices if there is
available capacity (which I'm guessing that Carnival has these days, and
will have even more of after the recent events). They end up paying port
charges and taxes and maybe a little more.

I expect this is the angle our recent spammer is exploiting as well.

Bill