Do You Feel Lucky, Punk?

[Sandy]

RE: Do You Feel Lucky, Punk?

Wholesale value, always. Okay, I just called Matt, my future CPA who just got home from Richmond, Virginia. Matt says that I am dead wrong! In order to run a raffle, they have to apply for & obtain a 1-time raffle Tax ID #. Before you get the Viper, they have to collect the tax FROM YOU for the car, you get a copy and submit with your income tax the proof that you paid it to the raffle holder. No beating it. (Good to have a future CPA in house )

 

[joeychgo]

RE: Do You Feel Lucky, Punk?

ANd they are going to list their actual cost as the value

 

[HOTLNC]

RE: Do You Feel Lucky, Punk?

Since the car was donated.....

Hummm. But wait a minute. The woman who donated the car is NOT getting a 1K buck tax deduction, I bet. So whatever her assigned value of the car (50K, maybe?) is the amount of taxes the winner has to fork over. At a 25% tax rate: our winner has to pay $12.5K taxes when he receives the car and shell out another $2.75K to get it registered in Texas. Not counting his raffle ticket(s) (but – good news – the ticket(s) are a tax deduction for him.)

Bummer.

 

[driller]

RE: Do You Feel Lucky, Punk?

I don't know about the income taxes, but here in WV, private vehicle transactions are charged sales tax for registration purposes by the 'book' value(book that the state has - not Kelly!). However dealer vehicles, new or used, in state or out, are based on the 'Bill of Sale' and NOT the book value.

My wife and I play a lot of charity raffles and such and I have said many times if we won the big prize we would have to sell whatever we won. Either because I would want something different or we would need to sell it to pay the taxes on it!