Club Cobra - Wounded Warriors Cobra

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Wounded Warriors Cobra

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 "1099" 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.

Quote:

Originally Posted by kanuck (Post 1329752)

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.

Yes that is what he said 1099, I knew it was 10 something, I guess I would have to take the 100K instead, and end up with 65K and get something nice with that and own it outright.

I would recommend asking for the appraisal if you win. $150,000.00 seems a little high for fiberglass CSX, however, it does seem like a fairly nice one. You can always have the car appraised before they issue the 1099 if you think the number is high. There are a lot of details that will either add to value or detract. You really need the build sheet and to consult with someone like Billy Andrews at HRE if you won to get a good idea as to value.

This is only a problem if you win. If you lose you just deduct the cost of your ticket as a charitable contribution.

Or, you could get really crazy and just donate the car back to Wounded Warriors and deduct the $150k from your taxes as a charitable donation.;)
I would certainly consult your tax adviser if you went that route!

Nothing comes for free

When is the drawing, the count down clock is off,

From the website so no negotiating on the value as far as taxes, so prepare to write a check for 50 thousand plus.

"A 1965 Shelby Cobra produced by Shelby American Inc in Las Vegas, Nevada (ARV $149,999) or $149,999 in the form of a Cash payout."

The drawing was today...

Congrats to Bill Fields, on winning the cobra.

Dean

Congrats to Bill. If he isn't a member here yet, I'm sure he will find us soon!;)