Sheep raffle

On these kind of raffles, I'm assuming if you win it's treated like winning the lottery where you have to pay taxes on the value on everything you received. Does anyone know if that's correct?
 
Yeah, I assume it is. I love the thought of winning a hunt like this but know you are going to be paying somewhere around 24-37% of the overall package value to federal taxes and plus your state tax value.

This package seems to be around $40k total so that's 10-15k plus state taxes.

It's worth it but definitely something to think about before putting in.
 
Yeah, I assume it is. I love the thought of winning a hunt like this but know you are going to be paying somewhere around 24-37% of the overall package value to federal taxes and plus your state tax value.

This package seems to be around $40k total so that's 10-15k plus state taxes.

It's worth it but definitely something to think about before putting in.
I cut that check all.....day.....long.

But, you're right, its not a "free" hunt.
 
On these kind of raffles, I'm assuming if you win it's treated like winning the lottery where you have to pay taxes on the value on everything you received. Does anyone know if that's correct?
Not necessarily, its kind of complicated. There is a bit of a loop hole, were in order to have to pay taxes the prize has to be 300x more valuable than the ticket. So like a 100 dollar ticket to win a 30k hunt...pay the tax, 200 dollar ticket to win 30k hunt...all good. I forget the actually IRS code.
 
Not necessarily, its kind of complicated. There is a bit of a loop hole, were in order to have to pay taxes the prize has to be 300x more valuable than the ticket. So like a 100 dollar ticket to win a 30k hunt...pay the tax, 200 dollar ticket to win 30k hunt...all good. I forget the actually IRS code.
That’s interesting. I haven’t heard that one but I’m no tax expert. In this case it would be worth more than 300x the ticket costs so taxes would be due.
 
That’s interesting. I haven’t heard that one but I’m no tax expert. In this case it would be worth more than 300x the ticket costs so taxes would be due.
I think there was a caveat that the raffle had to be by a tax exempt non profit in good standing. Just as a disclaimer: not an accountant, not financial/tax advice.

For this one you are definitely paying the taxes. Though you could make the argument the tag isn't worth all that much but it would be the extras that got you.
 

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