From their site:
Quote:
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The winner will receive the home free of any mortgages or liens, and will not be required to pay any closing costs!
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But the winner will have to pay
income tax -- probably based on the value
the raffle operators give to the IRS.
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!