D16RR Raffle, $40 per ticket

[GLantern]

Yes.  It's treated just like any other lottery winnings, it's not a sales tax issue - it's an issue of getting 70k$ for free, and the IRS wanting their cut as it's considered income.

O wow wtf that is some goddamn bullshit

[Rob Hilding]

At least he can deduct the cost of the raffle ticket(s)

 

 

[Grappa]

Yes.  It's treated just like any other lottery winnings, it's not a sales tax issue - it's an issue of getting 70k$ for free, and the IRS wanting their cut as it's considered income.

The pregnant dog of it is that you are being taxed on $72,500 income, when those bikes are struggling to fetch $60,000 on ebay (with very little mileage.)  Seems kinda lame like that.  Still, congrats to the guy and good for him.  I am still in partial denial that I didn't win.  Only tore up my tickets about 2 days ago. 

[hadesducati848]

dont they base the tax on the Blue book value at the time of raffle and not the sticker price from when it was made a fews years ago?

[DrDesmo]

dont they base the tax on the Blue book value at the time of raffle and not the sticker price from when it was made a fews years ago?

It's a brand new bike, I would be suprised if they valued it like that.

This is the IRS, remember 

Cheers,
Adam

PS: Honestly, who cares? A D16RR in the wrapper for 20-ishK?  And honestly, if you have a bunch of deductions or own a business ... do do do