WIN a 37 AVH - Active Thunder
10-17-2008 | 08:19 PM
#121
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From: IL...XLOTO
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.
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.
10-18-2008 | 10:23 AM
#122
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From: ~ Long Island ~ NY
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.
10-19-2008 | 11:06 AM
#123
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From: IL...XLOTO
Our yearly house raffle is held by the Catholic High School, also non profit. But the winner still gets to pay income tax on the value of the house they win.
10-19-2008 | 10:00 PM
#126
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From: Omaha/LOTO
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.
10-20-2008 | 09:00 AM
#127
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From: Mansfield, TX
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.
Last edited by TexomaPowerboater; 10-20-2008 at 09:10 AM.
10-20-2008 | 09:08 AM
#128
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From: Mansfield, TX
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.
10-20-2008 | 05:22 PM
#129
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From: Essex Junction, Vermont
10-20-2008 | 08:11 PM
#130
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From: IL...XLOTO
Now I wonder if that was right?
Last edited by Mentalpause; 10-20-2008 at 08:19 PM.
