Do You Feel Lucky, Punk?
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BlackIceLSC
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RE: Do You Feel Lucky, Punk?
I'm curious. State taxes. if you should win with the purchase of one ticket, does that mean you only paid $1000 for the car, and therefore can save BIG TIME when you register the car??? If so...I still wont enter.
I wonder why dealerships dont do that raffle. Just think. If they sell all the raffle tickets, they got $100k for a $60k car. Not a bad profit margin, wouldnt ya say?
I'm curious. State taxes. if you should win with the purchase of one ticket, does that mean you only paid $1000 for the car, and therefore can save BIG TIME when you register the car??? If so...I still wont enter.
I wonder why dealerships dont do that raffle. Just think. If they sell all the raffle tickets, they got $100k for a $60k car. Not a bad profit margin, wouldnt ya say?
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joeychgo
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RE: Do You Feel Lucky, Punk?
I think --- you would be taxed on the reasonable value of the car.
I think --- you would be taxed on the reasonable value of the car.
RE: Do You Feel Lucky, Punk?
If you won the car, you would only pay taxes on 1K bucks -- that is all you spent on the car. At least in Texas. If you and I traded cars, and the cars were worth big bucks, but no cash was involved, I would have to pay a minimum sales tax of 50 bucks. If cash were involved, I would just pay taxes on that cash, assuming the taxes were more than the 50-buck minimum.
I'm not sure about Income taxes. A raffle is not gambling, really. This raffle is already tax deductible. I guess if you won the car, you can’t list the 1K bucks you donated under "charity" on your tax form.
A dealer could do it, but he pays for the car up front and your “donation” would not be tax deductible, since the dealer is not a charity.
If you won the car, you would only pay taxes on 1K bucks -- that is all you spent on the car. At least in Texas. If you and I traded cars, and the cars were worth big bucks, but no cash was involved, I would have to pay a minimum sales tax of 50 bucks. If cash were involved, I would just pay taxes on that cash, assuming the taxes were more than the 50-buck minimum.
I'm not sure about Income taxes. A raffle is not gambling, really. This raffle is already tax deductible. I guess if you won the car, you can’t list the 1K bucks you donated under "charity" on your tax form.
A dealer could do it, but he pays for the car up front and your “donation” would not be tax deductible, since the dealer is not a charity.
J
joeychgo
Guest
RE: Do You Feel Lucky, Punk?
Well, if you win the lottery, you have to pay taxes on your winnings, not the $1 for the ticket.........
I believe your taxed on the reasonable value
Well, if you win the lottery, you have to pay taxes on your winnings, not the $1 for the ticket.........
I believe your taxed on the reasonable value
RE: Do You Feel Lucky, Punk?
That is gambling and winnings are considered income.
In Texas, auto sales tax applies if you exchange cash for a car. You can obtain a car by trading, purchase or as a gift. If I buy a car from you for 10K and then tell the state I only paid 1K for it, I would pay taxes on 1K. But if they caught me in the lie, I'm doing jail time for tax evasion.
If we traded cars and I passed you 1K under the table ("traded and other considerations"), I would pay tax on that 1K and be completely legal.
If you GAVE me the car, I would register it as a gift and only have to pay the minimum tax.
We had a local wreaker company owner who took a loan out for a used 98 truck. When he went to register it, he told the state that he bought it for 10 times less than what the loan was for. Some how, the state found out about the bank loan. Zappo! They nailed him.
Besides, who is to determine "what is the reasonable value of the car?"
That is my pet peeve about my insurance company and me driving old cars. I had a 81 RX-7 with new paint, a six month old hand build motor, a racing suspension, custom drive shaft and rebuilt tranny with only 1K miles (the car had over 300K miles) and a lady turned in front of me and I nailed her. $2000 damage to the right front and fender. Her insurance company TOTALLED my little race car. 750 bucks was its "replacement value."
The only way I could have gotten my car fixed by her insurance company was to provide an independent auto appraiser’s written estimate of the value of the car.
As it turned out, I showed then receipts and was able to get $2400 out of them. So I bought back my totaled Mazda for 750 bucks and walked away with 1650. I was able to fix it myself. They would not count the motor and tranny work because I did that myself.
That is gambling and winnings are considered income.
In Texas, auto sales tax applies if you exchange cash for a car. You can obtain a car by trading, purchase or as a gift. If I buy a car from you for 10K and then tell the state I only paid 1K for it, I would pay taxes on 1K. But if they caught me in the lie, I'm doing jail time for tax evasion.
If we traded cars and I passed you 1K under the table ("traded and other considerations"), I would pay tax on that 1K and be completely legal.
If you GAVE me the car, I would register it as a gift and only have to pay the minimum tax.
We had a local wreaker company owner who took a loan out for a used 98 truck. When he went to register it, he told the state that he bought it for 10 times less than what the loan was for. Some how, the state found out about the bank loan. Zappo! They nailed him.
Besides, who is to determine "what is the reasonable value of the car?"
That is my pet peeve about my insurance company and me driving old cars. I had a 81 RX-7 with new paint, a six month old hand build motor, a racing suspension, custom drive shaft and rebuilt tranny with only 1K miles (the car had over 300K miles) and a lady turned in front of me and I nailed her. $2000 damage to the right front and fender. Her insurance company TOTALLED my little race car. 750 bucks was its "replacement value."
The only way I could have gotten my car fixed by her insurance company was to provide an independent auto appraiser’s written estimate of the value of the car.
As it turned out, I showed then receipts and was able to get $2400 out of them. So I bought back my totaled Mazda for 750 bucks and walked away with 1650. I was able to fix it myself. They would not count the motor and tranny work because I did that myself.
J
joeychgo
Guest
RE: Do You Feel Lucky, Punk?
From the IRS website:
Topic 419 - Gambling Income and Expenses
Gambling winnings are fully taxable and must be reported on your tax return. You must file Form 1040 (PDF) and include all of your winnings on line 21. Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and also the fair market value of prizes such as cars and trips. For additional information, refer to Publication 525, Taxable and Nontaxable Income.
If you receive $600 or more in gambling winnings, the payer generally is required to issue you a Form W-2G (PDF). If you have won more than $5,000, the payer generally is required to withhold 25% of the proceeds for Federal Income Tax. If you did not provide your social security number the payer may have to withhold 28%. For more information on withholding, refer to Publication 505, Tax Withholding and Estimated Tax.
You can deduct gambling losses only if you itemize deductions. Claim your gambling losses as a miscellaneous deduction on Schedule A Form 1040, line 27. However, the amount of losses you deduct cannot be more than the amount of gambling income you have reported on your return. It is important to keep an accurate diary or similar record of your gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses. Refer to Publication 529, Miscellaneous Deductions, for more information.
From the IRS website:
Topic 419 - Gambling Income and Expenses
Gambling winnings are fully taxable and must be reported on your tax return. You must file Form 1040 (PDF) and include all of your winnings on line 21. Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and also the fair market value of prizes such as cars and trips. For additional information, refer to Publication 525, Taxable and Nontaxable Income.
If you receive $600 or more in gambling winnings, the payer generally is required to issue you a Form W-2G (PDF). If you have won more than $5,000, the payer generally is required to withhold 25% of the proceeds for Federal Income Tax. If you did not provide your social security number the payer may have to withhold 28%. For more information on withholding, refer to Publication 505, Tax Withholding and Estimated Tax.
You can deduct gambling losses only if you itemize deductions. Claim your gambling losses as a miscellaneous deduction on Schedule A Form 1040, line 27. However, the amount of losses you deduct cannot be more than the amount of gambling income you have reported on your return. It is important to keep an accurate diary or similar record of your gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses. Refer to Publication 529, Miscellaneous Deductions, for more information.
RE: Do You Feel Lucky, Punk?
Opps.
So, the raffle person must supply you with a paper that tells the IRS how much this car is worth? Or is this something you must do on your own at tax time?
Well, at least you can register it as being worth only 1000 bucks in Texas.
Opps.
So, the raffle person must supply you with a paper that tells the IRS how much this car is worth? Or is this something you must do on your own at tax time?
Well, at least you can register it as being worth only 1000 bucks in Texas.
J
joeychgo
Guest
RE: Do You Feel Lucky, Punk?
You know, im not sure who has to supply what. However, point is a 100k car could cost you $30k in taxes alone.
Ive heard about game show winners getting screwed like this. They win a bunch on price is right, and at the end of the year they learn they owe taxes on what they won. Sucks huh.
You know, im not sure who has to supply what. However, point is a 100k car could cost you $30k in taxes alone.
Ive heard about game show winners getting screwed like this. They win a bunch on price is right, and at the end of the year they learn they owe taxes on what they won. Sucks huh.
J
joeychgo
Guest
RE: Do You Feel Lucky, Punk?
Isnt that terrible? Most of us couldnt afford to win a car like that LOL
Isnt that terrible? Most of us couldnt afford to win a car like that LOL
RE: Do You Feel Lucky, Punk?
It makes you wonder about the gas guzzler tax too....Or is that only for a new car?
Yeah, if you read the fine print on games shows they scroll a disclaimer and a warning about Mr. Tax Man and the contestant. Contestant winnings are tax deductions for the games shows, but income for the contestant. You KNOW they are going to claim their tax deductions and WHO had the lucky income.
It makes you wonder about the gas guzzler tax too....Or is that only for a new car?
Yeah, if you read the fine print on games shows they scroll a disclaimer and a warning about Mr. Tax Man and the contestant. Contestant winnings are tax deductions for the games shows, but income for the contestant. You KNOW they are going to claim their tax deductions and WHO had the lucky income.
RE: Do You Feel Lucky, Punk?
In Maryland, you pay "Fair Market Value" for a used vehicle. State was getting ripped off too many times by private sales. Seller would tell state that he received something less than what he actually sold car for....after getting a small stipend from the buyer.
Bud Pytko
'97 LSC Silver Frost
'92 F250 Banks TurboDiesel Bimini Blue
http://myfilelocker.comcast.net/charlespytko/Lincoln/BudPytko97LSC.JPG
In Maryland, you pay "Fair Market Value" for a used vehicle. State was getting ripped off too many times by private sales. Seller would tell state that he received something less than what he actually sold car for....after getting a small stipend from the buyer.
Bud Pytko
'97 LSC Silver Frost
'92 F250 Banks TurboDiesel Bimini Blue
http://myfilelocker.comcast.net/charlespytko/Lincoln/BudPytko97LSC.JPG
RE: Do You Feel Lucky, Punk?
So the questions are:
Who determine fair market value?
Is it the wholesale price of the car?
Or the Blue Book value (loan value)?
Unless the car was brand spanking new, surely they could not say the retail price of the car, could they?
Are there any Fed Tax guys out there?
So the questions are:
Who determine fair market value?
Is it the wholesale price of the car?
Or the Blue Book value (loan value)?
Unless the car was brand spanking new, surely they could not say the retail price of the car, could they?
Are there any Fed Tax guys out there?
J
joeychgo
Guest
RE: Do You Feel Lucky, Punk?
in regard to taxes, I believe you determine - and if audited, thats subject to challenge.
I suspect if it is something new, like a new car, the value is probably represented on the tax form the raffler provides, in re a car, probably the sticker price.
in regard to taxes, I believe you determine - and if audited, thats subject to challenge.
I suspect if it is something new, like a new car, the value is probably represented on the tax form the raffler provides, in re a car, probably the sticker price.
RE: Do You Feel Lucky, Punk?
I'd ask the seller to sign off on the title, and meanwhile not fill in my name. Then I'd take the snake to any number of wholesalers I know and peddle it, selling it to the highest bidder, and fill in his name on the title, so it looked like he bought it from the organazation. His customer would pay taxes on it when they bought it from him. Meanwhile, he'd pay me in cash. Then, I'd take the cash, like all my money is going & put it a checking account & send it to Rider University for 4 semesters.
After all, that's also where my Audi A8 went to!!
I'd ask the seller to sign off on the title, and meanwhile not fill in my name. Then I'd take the snake to any number of wholesalers I know and peddle it, selling it to the highest bidder, and fill in his name on the title, so it looked like he bought it from the organazation. His customer would pay taxes on it when they bought it from him. Meanwhile, he'd pay me in cash. Then, I'd take the cash, like all my money is going & put it a checking account & send it to Rider University for 4 semesters.
After all, that's also where my Audi A8 went to!!RE: Do You Feel Lucky, Punk?
I think they go by (close to) Blue Book.
Bud Pytko
'97 LSC Silver Frost
'92 F250 Banks TurboDiesel Bimini Blue
http://myfilelocker.comcast.net/charlespytko/Lincoln/BudPytko97LSC.JPG
I think they go by (close to) Blue Book.
Bud Pytko
'97 LSC Silver Frost
'92 F250 Banks TurboDiesel Bimini Blue
http://myfilelocker.comcast.net/charlespytko/Lincoln/BudPytko97LSC.JPG
RE: Do You Feel Lucky, Punk?
Yeah, but if the raffle guys tells the Tax Man you won the car, they'll be looking for your winnings to show up on your 1040, right?
If they come after you, you can tell them you sold it. BUT selling it still counts as income doesn’t it?
Yeah, but if the raffle guys tells the Tax Man you won the car, they'll be looking for your winnings to show up on your 1040, right?
If they come after you, you can tell them you sold it. BUT selling it still counts as income doesn’t it?
RE: Do You Feel Lucky, Punk?
So you had better do a Blue book value or get a dealer to make a written offer on the car like you were going to trade it in, right?
Anything significantly less than that value and you are setting yourself up to get a visit by Mr. Tax Man.
Those guys love to have us shoot ourselves in the foot.
So you had better do a Blue book value or get a dealer to make a written offer on the car like you were going to trade it in, right?
Anything significantly less than that value and you are setting yourself up to get a visit by Mr. Tax Man.
Those guys love to have us shoot ourselves in the foot.
J
joeychgo
Guest
RE: Do You Feel Lucky, Punk?
ACtually, unless you spike some kind of red flag, you shouldnt have a problem. If you do get audited, then im sure unless you overestimated the value, or at least overdocumented, they'll find a way to charge you more.
ACtually, unless you spike some kind of red flag, you shouldnt have a problem. If you do get audited, then im sure unless you overestimated the value, or at least overdocumented, they'll find a way to charge you more.