App Store's 25 Billionth Download Comes From China with 'Where's My Water? Free'

Shame on them for not having the paid version already!

Top that, Proview!

Case Dismissed!!!
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$10,000 - that's a lot of music!

Congrats, Chunli Fu.
(Wondering how many visits MacRumors gets from China every day? ... @Arn ?)

I wonder if the winner will have to pay taxes on that gift card or if Apple will cover those? I doubt I would even accept that prize if I had to pay taxes on it unless I could get the gift card broken up into numerous $100 cards to sell on one of those gift card buying sites.

China huh?

Funny that.

Seems it would be a pretty nice marketing move to push sales in a massive country.

I'm sure it's just a coincidence though

jgallant1990 said:

Funny that.

Seems it would be a pretty nice marketing move to push sales in a massive country.

I'm sure it's just a coincidence though

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Cynical, much?

Omg! China's taking over.

Seriously though, congrats to the guy who won.

velocityg4 said:

I wonder if the winner will have to pay taxes on that gift card or if Apple will cover those?

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In the United States, yes. The winner will not pay taxes upon receipt of the gift card (because gift cards are untaxed), but only pay taxes after purchases occur with said gift card.

For example, you buy an Olive Garden gift card for $25. You pay exactly $25 to get the gift card. If you use this gift card to buy something later at Olive Garden for $25.00, tax is added, making it, say, $26.25 (with 5% tax rate). You give Olive Garden your gift card, and pay an additional $1.25 in cash.

velocityg4 said:

I doubt I would even accept that prize if I had to pay taxes on it unless I could get the gift card broken up into numerous $100 cards to sell on one of those gift card buying sites.

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Wow. Entitlement mentality at it's best.

velocityg4 said:

I wonder if the winner will have to pay taxes on that gift card or if Apple will cover those? I doubt I would even accept that prize if I had to pay taxes on it unless I could get the gift card broken up into numerous $100 cards to sell on one of those gift card buying sites.

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Do you have to pay taxes on store credit?
Do you have to pay taxes on the promise that you will receive a specific number of dollars of media over a non specific time?

Its not like the person can sell or transfer ownership of the item, nor have they actually received anything until a purchase is made against the store credit.

You could always gift apps in exchange for cash...

bbeagle said:

In the United States, yes. The winner will not pay taxes upon receipt of the gift card (because gift cards are untaxed), but only pay taxes after purchases occur with said gift card.

For example, you buy an Olive Garden gift card for $25. You pay exactly $25 to get the gift card. If you use this gift card to buy something later at Olive Garden for $25.00, tax is added, making it, say, $26.25 (with 5% tax rate). You give Olive Garden your gift card, and pay an additional $1.25 in cash.



Wow. Entitlement mentality at it's best.

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How is it entitlement mentality? If I had to pay tax on a $10,000 gift, I couldn't.

Also if you had an olive garden gift card for $25, and your dinner cost $20, wouldn't the tax be paid for by the gift card? It's not the same as having to pay tax on a prize as income (which I believe you have to in the US, but not in the UK or Canada.)

Congrats Chunli Fu if you read MR!

niuniu said:

Congrats Chunli Fu if you read MR!

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Let's hope her Government lets her view it

Santabean2000 said:

$10,000 - that's a lot of music!

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And TV Shows and Movies and Apps etc.

iTunes is pretty good.

bbeagle said:

In the United States, yes. The winner will not pay taxes upon receipt of the gift card (because gift cards are untaxed), but only pay taxes after purchases occur with said gift card.

For example, you buy an Olive Garden gift card for $25. You pay exactly $25 to get the gift card. If you use this gift card to buy something later at Olive Garden for $25.00, tax is added, making it, say, $26.25 (with 5% tax rate). You give Olive Garden your gift card, and pay an additional $1.25 in cash.



Wow. Entitlement mentality at it's best.

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I have to agree with Velocity to a point....if I had to pay a $3000 tax on a $10,000 gift certificate to some software store (the App store), I would probably not accept the gift either.

1)Even if I paid the $3k, I would still need to acquire $3k worth of App Store stuff just to break even! How many $1.99 apps or even $9.99 apps do I NEED?! Anywhere from 300 to 1500 according to my calculations to simply offset the taxes. On my iPhone or iPad or even over a scattered few iOS devices in my house. Yeah...not gonna happen.

2)I doubt I could even use $1000k at the App Store...I have enough music and do I really need to fill up my iPhone with 50 apps that I bought just to buy?

This "contest" isn't like something we voluntarily signed up for and were foaming at the mouth to win such as a car or $10,000 cash prize...or a flat $10,000 prize to the Apple.com entire website or Bestbuy. This is a taxable gift card to download some apps and music. Although it's a nice gesture from Apple, even over the next 20 years I would not ring up $10k worth of App Store goods.

bbeagle said:

In the United States, yes. The winner will not pay taxes upon receipt of the gift card (because gift cards are untaxed), but only pay taxes after purchases occur with said gift card.

For example, you buy an Olive Garden gift card for $25. You pay exactly $25 to get the gift card. If you use this gift card to buy something later at Olive Garden for $25.00, tax is added, making it, say, $26.25 (with 5% tax rate). You give Olive Garden your gift card, and pay an additional $1.25 in cash.



Wow. Entitlement mentality at it's best.

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First, yes I do believe they pay taxes. Not sales tax you ninny. Gift taxes. Probably 15%. Just like if you win the lottery or get a bonus at work. But being a gift card which has no intrinsic value until you spend it or sell it I'm sure there is some different protocol. I would think if Apple gave you 2000 to cover the taxes, that youd have to pay taxes on that 2000 as well.

Congrats! I remember the first contest it was the App "Bump" that won for that one fellow.

bbeagle said:

Wow. Entitlement mentality at it's best.

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Wow. Extremist Republican attitude at its worst. Not everything that makes a profit for large corporations is good, and if a corporation (aka: a person) doesn't have to pay taxes then why should I?

Is he a FoxConn employee?

Congratulations Chunli!

bbeagle said:

In the United States, yes. The winner will not pay taxes upon receipt of the gift card (because gift cards are untaxed), but only pay taxes after purchases occur with said gift card.

For example, you buy an Olive Garden gift card for $25. You pay exactly $25 to get the gift card. If you use this gift card to buy something later at Olive Garden for $25.00, tax is added, making it, say, $26.25 (with 5% tax rate). You give Olive Garden your gift card, and pay an additional $1.25 in cash.

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No, you must report prize winnings on line 21 of your 1040. It is considered income.

You are correct there is no sales tax on gift cards if you buy one, but if you win one as a prize you must report its "fair market value" as income and pay income tax on that amount less any allowable deductions.

Let me see, next week on ebay....

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Santabean2000 said:

$10,000 - that's a lot of music!

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music in china is free anyway