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Old 11-07-2010, 02:36 PM   #1
lspencer534
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Default Corvette Dream Giveaway taxes

I found a thread on the raffle but it didn't address the tax issue. Usually the winner has to pay taxes before taking the winnings, but I seem to recall that maybe the Kids Wish Network pays them? I figure the 2010 Vette has a value of at least $140K and the 67 of at least $70K, so taxes could be over $80K. Anyone know? BTW, I know that only 14% of the money goes to the kids.

http://www.winthevettes.com/see-hero-edition-zr1.aspx
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Old 11-07-2010, 02:42 PM   #2
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According to the info in their 'rules & regulations', the value of the two cars is $300,000.00 or you can take cash of $153,000.00. So, be ready to pony up at least $80K+ if you take the cars. I believe that, depending on your tax bracket and other circumstances, you may be able to 'average' the income over about 5 years, but don't quote me.
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Old 11-07-2010, 02:52 PM   #3
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just don't pay the taxes, the gubbermint will give you a free pass or two in life
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Old 11-07-2010, 03:04 PM   #4
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take the cash buy your own car ! pay taxes on the cash
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Old 11-07-2010, 03:07 PM   #5
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Red interior
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Old 11-07-2010, 03:10 PM   #6
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I think the winner HAS to pay the taxes themselves...I was under the impression that if someone else paid the taxes for you, then THAT was considered "winnings" as well. I could be way off, I'm a dentist and not a financial professional
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Old 11-07-2010, 03:13 PM   #7
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This tax thing is so stupid on raffled cars. Who the hell wants to spend $80K in "taxes" for 2 cars you just won? Taxes should be covered by the company raffling the cars. I would be pissed as **** if I had won these 2 cars and didnt realize I had to cough up $80K to get them. What the point?
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Old 11-07-2010, 03:24 PM   #8
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Win them and sell one or both before years end. This way come tax time you have the cash in hand to settle up with the Fed. That's what i would do it versus just taking the $150k. By selling the cars you stand to clear $200k easy.
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Old 11-07-2010, 03:33 PM   #9
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If you win and show up to claim both cars, you will be paying some huge amount to the IRS right then. The organization will have the forms for you to fill out. There is probably even a place to attach your check

Then the value of the cars (which will be determined by the raffling organization) is added to your annual income for tax purposes at the end of the tax year. Winning the cars and taking them or even taking the cash is considered to be earned income in the eyes of the IRS.

Do you pay a state income tax? Add the value of the cars in there too. If you license the cars and the tabs costs are based on the value of the cars, then pony up for that too.

Whether or not you can do income averaging would be best determined by a really good tax lawyer.
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Old 11-07-2010, 09:53 PM   #10
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That suxs, completely eliminates the reason for buying the ticket if you can't afford to win
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Old 11-07-2010, 09:58 PM   #11
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Quote:
Originally Posted by johnnyvettes View Post
take the cash buy your own car ! pay taxes on the cash
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Old 11-07-2010, 10:01 PM   #12
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That suxs, completely eliminates the reason for buying the ticket if you can't afford to win
Same things happened to the people that got on the show Overhaulin, some of them had to sell the cars JUST to pay the taxes.

What I found funny was that on some of the cars they did they didn't even do THAT much to them, new engine, interior kit, wheels, tires, SLIGHTLY modified suspension and a custom paint job and then they valued the cars at like 80 grand or more when they only did around 20 grand worth of work including labor.
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Old 11-08-2010, 12:11 PM   #13
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That suxs, completely eliminates the reason for buying the ticket if you can't afford to win
That's why I tend to avoid the car raffles.
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Old 11-08-2010, 02:13 PM   #14
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Originally Posted by c4cruiser View Post
...Whether or not you can do income averaging would be best determined by a really good tax lawyer.
I was under the impression that income averaging had been eliminated a number of years ago.
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Old 11-08-2010, 03:04 PM   #15
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Wow this really sucks. What happens to the cars if the winner takes the money?

A few years ago my sister-in-law's uncle won a 4 door Colorado (non 5.3) in a Lake Charles casino and my brother told me the casino covered the taxes.
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Old 11-08-2010, 04:19 PM   #16
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Quote:
Originally Posted by SmokedTires View Post
That suxs, completely eliminates the reason for buying the ticket if you can't afford to win
This is why the one time I entered a Corvette Museum raffle, I entered the one with the cash option. I couldn't afford the taxes on a new corvette. It's safer to take the cash prize, give x% to the government and have a few extra bucks in the bank.
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Old 01-15-2011, 12:35 PM   #17
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Quote:
Originally Posted by Madmikeee View Post
Same things happened to the people that got on the show Overhaulin, some of them had to sell the cars JUST to pay the taxes.

What I found funny was that on some of the cars they did they didn't even do THAT much to them, new engine, interior kit, wheels, tires, SLIGHTLY modified suspension and a custom paint job and then they valued the cars at like 80 grand or more when they only did around 20 grand worth of work including labor.
damn i did not know that the people on there were then on the hook for the car getting fixed up value, that really sucks.
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Old 01-15-2011, 01:22 PM   #18
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I don't believe you can average income over 3 or 5 years anymore. I think the feds took that away about 8 years ago.

Last edited by Mrs. glass car; 01-15-2011 at 01:23 PM. Reason: sp
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Old 01-15-2011, 01:30 PM   #19
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The Corvette Dream giveaway is a scam..I will never buy any tickets from those scumbags again
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Old 01-15-2011, 02:51 PM   #20
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If you win a Corvette from the NCM they require you to give them 25% of the car's value. The NCM then sends the money to the IRS and you get a 1099(and a car)
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Old 01-15-2011, 02:51 PM
 
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