[broiler]

There was a thread about this very topic last year at tax time and my professional opinion at the time was that Greg is correct because the seat is non-transferable and therefore has no value until the seat is used. The fact that the seat is non-transferable is the key to keeping the seat from being taxable. The theory is that if Greg, for whatever reason, is unable to attend the event, he received nothing of value and would not receive the value of the seat for missing the event.

A satellite won on the internet is usually transferable and would be taxable when you win because the seat has a cash value at the minute you win. Any option that creates a value for the seat would make the win immediately taxable.

Another poster called the IRS to verify my opinion of the taxability of satellite wins and, after an hour on the phone waiting to find someone that could answer the question, was given the same answer that I laid out above,