|
i think that's exactly it. I do the SoCal Dreamhouse raffle thing every year for the Special Olympics. As I understand it...you're liable for the tax on the value of the prize. It's considered income.
Let's say you win a house that's valued at $4 million. Also, let's say they offer a cash prize instead...say it's 1.5 Million. You can take the house, and either pay the tax on $4 million worth of income, or you can try and sell the house before the year is up. If you sell the house for 3 Million, then you win out. If if you can't sell the house, you're liable for the taxes.
If you take the 1.5 million cash option, you just give your chunk to the govt.
__________________
-mike
|