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How Do They Tax You?

Discussion in 'Members' Lounge' started by B16RacerN2NR, May 6, 2004.

  1. B16RacerN2NR

    B16RacerN2NR Working Hard VIP

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    I buddy of mine at work is selling raffle tickets for his church. First prize is of your choice out of 25K cash, a mini cooper S, a 04 stang, IS300, or benz, i don't know what kind of benz so don't ask. My question is if I win, how do they figure how much to tax you on your next income taxes? i'm just trying to see what would be a smartest choice out of the prizes. I hope i worded it correctly so you guys can understand what i'm asking.
     
  2. MikeBergy

    MikeBergy Blah blah blah....

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    I think it is a gift tax, not income, and I think the tax rate is like 30 something %. Outrageous if you ask me.
     
  3. ahedau

    ahedau Senior Member

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    No, its income....




    ALWAYS take the cash or cash equivilant... The person paying the prize will pay Uncle Sam and then pay you. You hve to list it on you next years tax return but the tax (as much as 55%) will have already been paid!
     
  4. B16RacerN2NR

    B16RacerN2NR Working Hard VIP

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    Good call. So do you know if they will almost always go with the full on 55%?? or is it like a "what mood am i in today" decision?
     
  5. Airjockie

    Airjockie Watanabe Whore!!!

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    something smells fishy...... <_<


    unless you are actually a really lucky guy........ :blink:

    Don't count the chickens until they hatch...as in...don't decide the prize till you've won.... B)
     
  6. lowandslow

    lowandslow Senior Member

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    :werd:
    haha
     
  7. 90crxb18

    90crxb18 Senior Member

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    how much is a ticket and where can i get one? :eek:
     
  8. ahedau

    ahedau Senior Member

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    depends on what tax bracket you're in to begin with and what state your in
     
  9. B16RacerN2NR

    B16RacerN2NR Working Hard VIP

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    are you trying to hint that we are going to rig this raffle?? ;) J/P...it's nothing like that. Me and him were talking about winning prizes like that and he was telling me how him and his wife won some tickets to a micheal jackson concert through KIIS and he said they taxed him like $1000 and what they got was worth about 5 grand. I was just wondering, that's why i asked. also, they won the tickets because his wife used to work for KIIS FM...now that's rigged
     
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