[crASH]

Joe-

Man, you must have bought more of these LCS raffle tickets than me. But I digress. I remember the first time I bought a stack of raffle tickets for a car I asked these same questions. Raffle winnings fall under the category of legal gambling winnings with the IRS, if I recall correctly.

In fact, it is the responsibility of the raffle holder to handle the withholdings with the IRS if I recall, but I have learned that NONE ever do this, and if you read the fine print of any car raffle rules, and the LCS raffle follows this, it will say that you, and you alone are responsible for all taxes, tags, licenses, witholdings of your firstborn, forfeiture of your spouse, anything and everything.

I think that at the end of the day, if you win a $40,000 car, you will be responsible to the IRS for the income tax associated with whatever impact that 40K has on your overall tax picture for 2011. I can't speak to Texas tax laws since I live in NC, but I understand that ya'll have no state income tax (and it's a beautiful thing, too)

Disclaimer: I am NOT a tax, or legal professional.

"crASH"