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Monkey with a mouse
Join Date: Oct 2000
Location: SoCal
Posts: 6,006
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Raffle your house!
Just saw a short story on the news; a couple is raffling their home for $50 a ticket.
They are trying to sell 31,000 tickets @ $50 a piece ($1,550,000 gross) and will donate 10% to charity to legitimize the raffle. They say they will not make any money, just break even if they sell all the tickets. I haven't thought it through, but it seems like a good idea. Just found the story here: http://www.liveinalpharetta.com/blog/2008/10/15/buy-a-million-dollar-house-for-50-what-a-stinking-good-idea/ FYI. Best, |
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12-13-2008, 04:58 PM
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Band.
Join Date: Dec 2003
Location: Denver, CO
Posts: 13,355
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What if they only manage to sell 2,000 tickets and are legally bound to continue with the raffle?
 If they succeed, I've got a job for them in concert promotion.
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1983 SC Coupe 1963 BMW R60/2 1972 Triumph Tiger 1995 Triumph Daytona SuperIII |
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12-13-2008, 05:25 PM
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Monkey with a mouse
Join Date: Oct 2000
Location: SoCal
Posts: 6,006
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Quote:
I might buy a ticket. I assume there will be some fairly serious tax consequences for the winner. |
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12-13-2008, 05:28 PM
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Monkey with a mouse
Join Date: Oct 2000
Location: SoCal
Posts: 6,006
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Here's the official site:
http://www.fiftydollarhouse.com/ |
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12-14-2008, 11:00 AM
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Registered
Join Date: Feb 2004
Location: Decatur/Madison, Alabama
Posts: 1,192
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The rules state it may be canceled if less than 31500 tickets are sold and only 99% of the ticket prices will be refunded if it is canceled.
If this works I am thinking Lotto scale with tens of millions of tickets sold at only $1 with similar rules and just refund 99%......maybe I could get the 1% of say $30Million.Maybe the 1% is for the company that is probably required to actually run a legal raffle.....
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Rob Channell One Way Motorsports 1979 911SC mostly stock  1972 911T Targa now with a good 2.7 1990 Miata (cheap 'n easy) 1993 C1500 Silverado (parts getter) |
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12-14-2008, 11:49 AM
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Registered
Join Date: Mar 2004
Location: Summerville, SC
Posts: 2,057
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From their site:
Quote:
Let's say that they tell the IRS the home is worth $1.4 million. (Based on: "31,000 tickets @ $50 a piece ($1,550,000 gross) and will donate 10% to charity to legitimize the raffle." They "make" nothing on the raffle, just "break even" -- meaning they probably pay down their mortgage(s) on the property.) With Federal and State income taxes, the winner could owe close to $700,000 in taxes. What is the fair market value for that house right now? What if it is worth less than $700k? Buying a ticket to try to win that house could be buying yourself a chance to lose a ton of money! |
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12-14-2008, 08:46 PM
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Friend of Warren
Join Date: Oct 2000
Location: Lincoln, NE
Posts: 16,506
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Lots of people have tried these raffles and I have yet to hear of one where they sold enough tickets to complete the raffle. It makes me wonder how my of the ticket holders ever get their money back?
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Kurt V No more Porsches, but a revolving number of motorcycles. |
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12-15-2008, 06:47 AM
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unindicted co-conspirator
Join Date: Jul 2007
Location: Fresno, CA
Posts: 1,660
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yesterday they just raffled off a house here for St. Judes Hospital
Do you owe income tax if you win? I know you have to pay the property tax. & no it was not me The tickets were $100 each & they were selling 26000. 2.6 mil in revenue for a 350K house, not a bad
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'03 996 - sport exhaust, sport seats, M030 sport suspension, stability control, IMS Solution ‘86 928S3 - barn find project car |
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12-15-2008, 01:05 PM
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