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Originally Posted by TexomaPowerboater
(Post 2718379)
The amount paid for the ticket is not deductible as a charitable contribution. They are deductible to the extent of gambling winnings (i.e. its treated as a gambling activity).
The winnings being taxable is a grey area. If properly set up it could be considered a gift (i.e. not taxable), but the general rule would be to treat it as gambling winnings. On another note, if it is taxable - your basis is increased to the FMV or income claimed, so no gain when you decide to sell down the road. If its not taxable you basically have no basis and you'll pay the tax when you sell. They will get you either way. Plan for the gambling rules to apply if you win. |
Originally Posted by Mentalpause
(Post 2718813)
I bet the winnings being taxable is not very grey to the IRS - and there are very clear IRS laws on gifts - and how much GIFT you can get in a given tax year.
Plan for the gambling rules to apply if you win. |
Originally Posted by TSPM
(Post 2719118)
As we understand things........Gambling Rules do not apply because of the NON PROFIT structure of the prize and the organiztion behind it.......which is different than winning in Vegas.
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Keep it coming I'll have my accountant figure out the tax thing. I'll be happy to win and pay the taxes.
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Can't anyone, put what it would cost you if you won this boat, State Taxes and all other expenses, before you could walk a way with it.?
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I think that will vary depending on your income level. I would imagine its like adding 100k in income and you would have to pay tax at the end of the year based on you tax bracket and deductions.
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Originally Posted by Mentalpause
(Post 2718813)
I bet the winnings being taxable is not very grey to the IRS - and there are very clear IRS laws on gifts - and how much GIFT you can get in a given tax year.
Plan for the gambling rules to apply if you win. |
Originally Posted by TSPM
(Post 2719118)
As we understand things........Gambling Rules do not apply because of the NON PROFIT structure of the prize and the organiztion behind it.......which is different than winning in Vegas.
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Originally Posted by TexomaPowerboater
(Post 2720387)
I disagree. I'm a tax accountant and I researched the topic. The laws and case rulings are very specific. Please post some facts to the contrary. I'm sure your contributors would just assume not take your word for it.
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Originally Posted by TexomaPowerboater
(Post 2720384)
There is no max on how much gift you can recieve. There is a gift tax on amounts given in excess of 12,000 (24,000 MFJ) which applies to donor individuals, not donees. Gift tax doesn't apply to non-profit organizations.
Now I wonder if that was right? |
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