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raffle question regarding income taxes

Discussion in 'Oktoberfest 2009' started by the_dude, Sep 1, 2009.

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    the_dude guest

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    Hi, I'm curious if anyone knows how winning the raffle works in terms of federal income taxes. The rules aren't entirely clear.

    The rules state:

    "All taxes, license fees, options, and/or destination and dealer prep charges are also the responsibility of the winner."

    and

    "Federal taxes will be withheld."

    1) If the prize is a car, how can taxes be withheld from it?
    2) If, for example, I win the grand prize, do I need to come up with $40k to pay federal income taxes??

    Thanks much.
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    CRKrieger

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    If that's the bracket you're in, yes.

    Obviously, withholding can't be done on a car, but you will have to arrange to pay the income tax somehow.
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    CSBM5

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    I think you'll find the majority of raffle winners choose the cash instead of the car. When I had this discussion a few years ago at the 2005 O'fest with someone, I asked him if he would pay $30k for a brand new 2006 M5 if it was offered to him on the spot. He said absolutely. Well, the tax situation with winning a raffle is similar to being offered a brand new whatever for 25-35% (likely much less with deductions) of its MSRP. I'm guessing when you go to register it at your locale, you might have to pay the "sales tax" on the MSRP too, but I don't know for sure.
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    mattm

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    A friend won a C6 Corvette (Rev-It-Up). He took a a taxable income hit for MSRP. As they say, becareful what you wish (or raffle) for.

    chasek72 guest

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    Sounds like the way to go. Is this option available every year?

    Regards,

    Chuck
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    woodym3

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    Yes. And a percentage is withheld for Uncle Sam. Ask me how I know.
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    steven s

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    OK, how do you know? ;)

    captainmp guest

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    Please someone: When is the 2009 Raffle held???

    Member since 2005
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    steven s

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    Tickets will be drawn during the week of Ofest. Sept 28 - Oct 2.
    Names are normally posted after everyone has been notified.
    Good luck!
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    eyeguy

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    I never received my raffle ticket numbers and the drawings have already started! Are they emailed?

    BIMMIR guest

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    When you register the car you'd have to pay all registration fees. (Which would vary by state, at least in Maine, sales tax and excise tax is pretty heavy). So if I won the M5 in maine, it would likley be around $7,000 - $8,000 to register it.

    Then, year end taxes would be about 35% of the sticker price, or about $36,000.

    So, yes, very expensive, but as someone replied, still a pretty good deal for a $105,000 car! In Maine it would be about $43,000 to win the car.

    I would probably sell it immediately, order the 135i I want and bank the rest for fees, taxes and pay off my 328 convertible. :)

    paulcs guest

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    Only received 1 ticket

    I bought 3 tickets but only received 1 number post card. What gives? Did I miss something?

    PAT226 guest

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    Raffle Tickets

    I also, have never recieved my raffle ticket numbers- good question, how do we knwo what are numbers are?

    damien_ro guest

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    I hope I win, haha, I'm in iraq~ no taxes!!

    i bought 10 tickets i only got the numbers for 5, but the first 5 i paid for separately from the last and the postcard took over 2 months to get to me. so probably the other 5 numbers are still in the mail.
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    PaulFini

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    I bought five tickets at once, and my postcard had the numbers for all of them printed on the postcard... hopefully yours should as well.
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    CRKrieger

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    Having been present at a number of these drawings, I can tell you that you don't need to know your numbers. They draw the number, match it to your name, and make sure you are a current member, then they call you. Either that or, when they say the name, somebody in the room jumps up and starts yelling incoherently. Trust me; he was sitting right behind me.
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    sfbayrealtor

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    I bought 6 tix, and didn't receive a postcard/letter with the numbers either. but my credit statement shows I bought em! would be good to get some kind of confirmation of receipt.

    shariqueahmed guest

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    Folks - any news if the winners have been announced? I guess I am not one of them as I have not received a phone call or email - believe the last drawings were yesterday evening!

    matwags guest

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    Raffle

    I was wondering if anyone had heard any news as well. The phone rang 2 times last night, while we we watching a movie, and I didn't answer it. After the movie I realized that it was the last day of the raffle, and of course figured that BMWCCA was trying to get a hold of me!

    damien_ro guest

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    what if you are not in the country? if they can't get ahold of you by calling do they pick another ticket?
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