[marklotus]

Originally Posted by kanuck

I was telling my buddy about this cobra raffle, and being a finance guy he was telling that, if I did win it that they were going to give me a "1040" stating that, I had just received goods also counted as income for 150 thousand dollars, and that I would owe the IRS 28% and 7% state for a total of, 35% of the value which turns out to be over 52 thousand dollars, is this true and is this car really worth 150K, I have not seen to many lately sell for even close to that, don't get me wrong it is an good cause, but that did put a damper on my dreams, of driving of into the sunset in a red cobra.

You would get a 1099-Misc for miscellaneous income received and it would be taxable to you. The 1040 is your tax return. The value could be argued and $150,000 seems too high. It would probably be best to get a realistic number from WW before the 1099 is issued. All in all, paying taxes on winning one is a lot cheaper than buying one. You could also deduct the money spent on buying the lottery tickets from the prize income.