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There are many reasons to enter a charity raffle. One is simply the willingness to help others, the other is simply the fun of seeing if you win something. The cost of a ticket can be significant but the largest issue is the taxes incurred if you win a property. One organization is taking a different tack in this instance stating in the rules that if you win the first prize you have 2 choices. One is to Take a smaller cash payout. The other is to buy the property for $1000. The organization running the raffle owns the property and if you win you win the option of buying the property offered for the $1000. This makes the transfer of property a sale and not a prize in a raffle which is classed as gambling and subject to anywhere from 25 to 33.3 percent property taxes. This huge tax expense is eliminated if the the winner chooses to buy the property. In this way the new owner is now only responsible for the property taxes in the county where the property lays.
1 year, 3 months ago on Would You Buy a $150 Raffle Ticket For a Chance to Win a $350,000 House?