Quote:
Originally Posted by 1ntCobra
One of the reasons I asked about the details of the car was after seeing this in the rules:
Prizes / Odds of Winning: Grand Prize: One Cobra Replica, with a fair market value of $78,500 /not more than $125,000.00.
Presumably someone winning this car might be expected to pay taxes on the $78,500 amount.
With that type of price tag, the potential tax bill of the winner is a nice chunk of change. It would be nice to see a build list so that the winner would know what he or she might get for tax dollars that need to be spent after winning the car.
Just for comparison purposes, I see a used Kirkham replica for in the classifieds now for $1400 more than the fair market price of the raffle car.
http://www.clubcobra.com/classifieds...p?product=3186
The raffle car is a very nice looking replica, but I do think the fair market value seems a bit high (not that I know anything about appraising these cars).
I suppose the raffle winner could have an appraisal done which might lead to a different fair market value for tax purposes.
It is a nice looking replica and the charity looks worthwhile. |
Say your number comes up and you win. You could always go for the humanitarian award of the year and say "no thanks" and tell them to keep the car so they can raffle it off again.
You'd have to work through the numbers to determine what the tax hit would be compared to what you think the car is worth or could be sold for. I'm pretty sure you'd still come out ahead on the deal with a $25 investment.
