The sponsor's estimate of the value of a specific sweepstakes prize. These estimates depend on factors such as the value of the prize when the sweepstakes ends and the location of the recipient. Sweepstakes taxes in the US are only paid on the Fair Market Value (FMV).
ARV can also stand for "Actual Retail Value." This definition is usually used when the value of the prize is clear, as when cash prizes are being given away.
The ARV can help you determine whether the prizes you're entering to win are worth the taxes you'll pay on them. Do you want to pay the taxes on a $4,000 dinner party at your home? Can you afford the "free" vacation which doesn't include spending cash or money for taxes? For more information, see why it pays to be picky when entering sweepstakes.
- We are giving away ten trips with an Approximate Retail Value of $2,500 apiece.
Grand prize: A fully-equipped 2007 Ford Escort (ARV: $17,500)