Even in real estate hard-times, dream home raffles aid good causes
It’s exciting to know that, even in real estate hard-times, “dream home raffles” for charity generate aid for good causes.We’re having a “Dream Home raffle” to benefit St. Jude’s Children’s Hospital, in the area where I live, and it seems like a terrific idea to me. I haven’t followed how ticket sales are going (for $100 you get a chance at a newly built house in a nice subdivision which has been valued at $375,000), but I hear a lot about the raffle (the drawing is next month) on local television newscasts, so I assume it’s doing all right.
But I began to wonder — actually, members of a men’s Bible study group I attend at church on Tuesday mornings started the speculation — about what sort of frills and doodads such homes have, and most importantly, what sort of tax wallop is waiting to smack the winner. As for the quality of the home, I think median home prices in today’s market in and around Springfield, Missouri, would place this home considerably above the median, and I’m sure it has some nice features built into it. (I wonder if it has vessel sinks? I just recently read about vessel sinks and think I’d like to have some.)
As for the tax man’s cut of such a deal, I suppose there’s an explanation about that part if I were to buy a ticket, or inquire about one of the tickets. Speculation in our small group this morning was that you’d probably have to pay at the highest tax bracket, or perhaps pay at some sort of tax rate for gifts and/or gambling winnings, since you’d be getting the home as a result of a raffle.
Anybody reading this know how such things work for taxes? What about all those excited people who win money and prizes on TV game shows? How do they get hit with taxes? Anyone who knows about such tax matters, leave us a comment and enlighten us.
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