What is the tax consequence of winning a raffle prize?
September 15, 2006
Date: Fri, 16 Jun 2006
What is the tax consequence of winning a raffle prize? Which prize would have a better tax result: a home worth $800,000 or $500,000 in cash?
Date: 30 Jun 2006
Raffle prizes are taxable income. The tax for a home worth $800,000 would be higher than for $500,000 cash. The home would still be a better prize, after income taxes. If you wanted to keep the home, you could probably borrow the money using a mortgage secured by the home to pay the tax.
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