$100 for a 2002 Modena Spider- school raffle in Florida

Value counts as income.

 

I saw something like this before on an other church, they couldn't sold more tickets at the end they cancel the raffle. Refund everybody money, turn around & sold the car outright. They do have the right to cancel any time just like e-bay, plus they get all the FREE advertise for the school.

 

Can you deduct the cost of the raffle tickets in these things? Looks like a nice 360...great color!

 

Anyone know of the texas laws with this as far as taxes? I don't know if they changed it but you could buy a used car and tell them you bought if for x amount under the actuall price and and only pay taxes for that(so I was told). Has this changed?

 

I would do it since it is charity but not so sure I would want to pay the taxes on winning something.

 

Remember this?

http://www.ferrarichat.com/forum/showthread.php?t=18048&highlight=raffle+360

 

well you could always sell it and pocket over 100k well you'd still have to pay taxes on that....nevermind lol

 

interesting....

 

ouch. and imagine if some hillbilly wins it not knowing this; kiss that $100 (and the car) goodbye

 

Well, I'm sure there is some creative accountant who can work out the tax situation. I'm not an accountant, but sometimes I play one on April 15th.... That being said, I would deduct the cost of my raffle tickets as a charitable donation. As for the prize, who determines the value of the car? I know that DMV's sometimes snag people on sales tax evasion by saying a 30k car was bought for 8k to avoid the 7% tax (in NJ) but I don't know if the IRS would have the same criteria. I would think the school would have to produce some form come tax time....

As for canceling, that was my initial thought as well, but the school confirmed it was going to happen regardless of ticket sales. They said that they are only allowed to offer a tax writeoff to the 360 owner on the amount of ticket sales income. So he isn't getting a 125k writeoff (market value) but the number of tickets sold ($45k)

 

I'm starting to wonder if most on this board aren't 14. Anyone who's ever had a kid at a private school, and I'm hoping you folks pony up for the good school before you buy an Fcar, have seen this again and again. Parent who owns car can can more donating it than selling it, he can give an inflated price, say the price at the now departed peak. School gets whatever it gets. Everyone is happy. It's totally legit.

 

Not an accountant, but talk recently to her for a similar school fund raiser (no Ferrari was involved). I believe prizes are taxed at 50% of market value (this is federal income tax law, not state) - same as when you win the lottery or win money gambling. Also I don't believe you can write off raffle tickets or anything for which you get value, even if the money goes to a charitable cause.

 

Chris Sawyerr,....glad to see you back in action. How's it going?

 

Look up IRS form 1340 I believe it is. 25% tax...the same for if you win the Powerball. So let's say $140K car = $35K tax bill. Accountants, tax attorneys any input? Still, cheaper than paying market price! In reality, you're better off selling the car, paying the $35K tax bill and keeping the rest of the cash. Although, theoretically, you could take an auto loan out on it for $45K right? ($35K for the taxes and $10K for the major. )

Per the seller, no cancelling this under law and the write off is for $ from ticket sales OR car's value, whichever is less.

 

Raffle is a couple days away. They show 760 tickets sold.

 

I'm a gambling man....just bought a couple of tickets....Holding breath. If I won I would GLADLY pay the tax...what like $8750 based on 125k value!

 

$8750 plus fees to title and tag it in FL; plus $31,250 Federal income tax on winning it, if the tax rate is 25% of its value as mentioned above. All assuming $125K value.
And maybe $ 10K-15K for a major service, depending on its history.
Still a bargain. I bought a ticket as well.

 

so did this happen yet?

 

Damn, so Chris is back in business! And this time he's a Christian!

 

the list of winners is on their web site