Quote:
Originally Posted by A-Snake
I might add that in many if not most cases, the charity raffle will require a payment from the winner of 20% of the value as a withholding for the IRS.
|
I think A-Snake is correct in this, but in the last three Cobra raffles that I have bought tickets for, no one did this. The good news is that worst case, even if you DO have to withhold 20%, that doesn't mean that you will actually owe 20% in income tax at the end of the year. It boils down to whatever your total income tax picture looks like for the year, plus the value of the car (let's say 30K) to your income picture.