The fine print:
"The lucky winner will wind up shelling out much more than $100, because the Internal Revenue Service considers raffle prizes to be taxable income. In the case of a non-cash prize, such as Gray's home, the winner must pay 25 percent of the fair market value of the prize, minus the price of the raffle ticket. Since the fair market value of Gray's house is $280,000, the winner will owe the taxman $69,900.00.
"You can try to lower it based on the comps in the area," says Mario Piccolino, a Certified Public Accountant and owner of A&A Income tax, referring to the comparable home values. "But it's pretty much the fair market value."
Then the winner must pay a tax on the property to Arizona at 5.04% — another $14,112.00. Factor in $1,200 in annual property taxes and all the other expenses a homeowner incurs – insurance, utilities, upkeep and repairs— and that $100 ticket has become more than $84,000."
Answer by akinbottom2 at 12:58 PM on Feb. 20, 2009
Answer by Fiveofakind2 at 12:55 PM on Feb. 20, 2009
Answer by LoriKeet at 1:01 PM on Feb. 20, 2009
Answer by Fiveofakind2 at 1:03 PM on Feb. 20, 2009
Answer by Anonymous at 1:05 PM on Feb. 20, 2009
Answer by MommyToSmeech at 2:08 PM on Feb. 20, 2009
Answer by LovemyQ at 3:00 PM on Feb. 20, 2009
Answer by Anonymous at 3:03 PM on Feb. 20, 2009
Well, I guess those of you who think this is a "great deal" are either independently wealthy, or can afford to simply uproot yourself and your family if you were to win?
You do realize that you will need to sell your current home/break the lease, quit your current job to find another one in the Mesa, AZ area, right? Because as you know, jobs are aplenty (sarcasm)!
I guess I'm one of the few people who doesn't have any sympathy for those who are looking to be bailed out, because they didn't have a contingency plan in place when they bought their home.
Why is it the responsible people have to pay for the 7% in trouble, many of whom bought houses they couldnâ€™t afford? Whatâ€™s the worst thing that happens if they donâ€™t get bailed out....they join the 32% of Americans who are renters?
Answer by LoriKeet at 3:43 PM on Feb. 20, 2009
Answer by Anonymous at 4:27 PM on Feb. 20, 2009