So the new owner wins the car(Bonkers)He then sells the car for 106,000.He would be liable for the winning taxes of anywhere 40,000-60,000 Being the car windowed at 150,000.Would he then have to pay income tax on the profit when he sold it.Being that it is so much.Or because he got taxed on the winnings he is in the clear.Question at hand is if you have something and then sell it (car) at any profit it would be tax free?Example buy at 60,000 sell for 45,000 profit.How does gov't look at that money being that they don't get any sales tax or any money.Hope this makes sense in what I am asking.
Question about raffled CC
- Thread starter FLOORIN04
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46hemi
Enthusiast
If I am correct you only get hit once. Its basically like your boss handing you 150k and not taking any taxes out. At the end of the year pay your share and so as you wish. Of course if you sold it for more than its declared value...technically I guess you would owe taxes on your "profit" above the claimed value.
At least I think
At least I think
Chuck 98 RT/10
Enthusiast
I'm betting Bonk owes the government the highest of the two amounts.
I'm betting Bonk owes taxes on 150K. I doubt the government would allow depreciation to 106K.
If he would have sold it for 200K I'm betting he would owe taxes on 200K.
But I'm no accountant. I'm just guessing.
I'm betting Bonk owes taxes on 150K. I doubt the government would allow depreciation to 106K.
If he would have sold it for 200K I'm betting he would owe taxes on 200K.
But I'm no accountant. I'm just guessing.
poweradded
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how did he only get 106 for it? what a retard
Lee00blacksilverGTS
Enthusiast
He most certainly is NOT a retard. He had a LOT of people helping him make the decision, including a bunch of Viper Racing League guys who know how to value these cars, as well as the guy who runs the league, Skip Thomas. Please check the following thread before making any insensitive comments or assumptions about the price.
http://vca2.viperclub.org/forums/showflat.php?Cat=&Board=UBB21&Number=625948&page=0&view=collapsed&sb=5&o=&fpart=1
http://vca2.viperclub.org/forums/showflat.php?Cat=&Board=UBB21&Number=625948&page=0&view=collapsed&sb=5&o=&fpart=1
DodgeViper01
Enthusiast
Evidentially you do not know much about competition coupes. They do not hold value like that. This car was for sale first and they could not even sell it so they decided to raffle it off.
FrankBarba
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106K is cheap for a new CC. He was nervous. I had it sold for him at 125K....He never called me back...
1TONY1
Enthusiast
My question.....I never saw the car "up for sale"
I think he left money on the table. And why he won't speak for himself is weird too.
98MODMTR
Enthusiast
Ya, not that it's any of my buisness, this 3rd party talk is something out of the movies or some gov't scandle.
Gerald
Enthusiast
If I would guess, 106k was what he got in HIS pocket at the end of the deal. If it were me, I would sell for , lets say 10k under retail to move it quickly then tell the buyer he is responsible for my taxes. He pays then, and what's left over is the 106k. Am I right Bonk ?
G
G
ACR steve
Enthusiast
damn I tried to trade him a boat worth 175,000 for it ....he sold it for 106,000 
Tom Francis
Enthusiast
I don't know where that information came from but the Competition Coupe in question was never offered for sale to the public. It was done for the VCA Club for the raffle.
We currently have a waiting list for buyers of the Competition Coupe.
Tom Francis
Viper Race Headquarters
888-960-3333
We currently have a waiting list for buyers of the Competition Coupe.
Tom Francis
Viper Race Headquarters
888-960-3333
ACELLR8
Enthusiast
Why are the tax's so high on the car? Are the taxes higher when you win something Vs buy it?
Just curious?
Ed
Just curious?
Ed
poweradded
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now said group of customers is seeking to pay sticker for the cars right? unpainted?
poweradded
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why wasnt there a post offering it forsale btw? sounds like someone in your club wanted it cheap so you all helped him out, you know the guy with deep pockets anyway and at a broke dick like bonkers expense.
Correct me if I'm wrong:
You "purchase" or win a car, and pay taxes on that transaction based on a specific declared value.
After that, the only time you would pay additional taxes would be on the capitol gains that exceed the original price "paid".
You "purchase" or win a car, and pay taxes on that transaction based on a specific declared value.
After that, the only time you would pay additional taxes would be on the capitol gains that exceed the original price "paid".
BadVenm
Enthusiast
I don't know jack about tax law, but I have been under the impression that you do pay a higher tax on winnings vs. income or a purchase. I have been under the impression the same was true for gifts as well. If someone gifted you 100K, you'd pay higher taxes than if you earned 100K.
If there are any tax lawyers on here that do know, I'd like to be educated so I know the actual law.
I'm guessing that Bonkers is quite because he's worried about getting flamed for selling it. So many that wanted it would have kept it and raced it, they might jump him if he shows up on here. I know that's what I'm waiting on.
V10SpeedLuvr
Enthusiast
Bonkers did what he had too. I wouldve had to sell it as well. The timing was bad b/c the guys with the deep pockets who can afford to keep and race it already have their stuff for race season, thus hurting the value (as mentioned in another thread). He paid $125 for a ticket and made $106k. Whether he left money on the table or not, I could deal with a profit like that anytime, even after I pay the taxes
big-n-italian
Enthusiast
<< G he sold it for 106k and also took the tax hit >>
if this is true, did the buyer also get the rest of the winning "package" such as the wheels, tires, driving suit, etc?
if this is true, did the buyer also get the rest of the winning "package" such as the wheels, tires, driving suit, etc?
The difference between buying a car and paying taxes on and winning a car and paying taxes on it is that when you buy a car you pay sales tax on the value, when you win a car, that is income and you pay income tax on it. Big difference.
Lee00blacksilverGTS
Enthusiast
Lot's of Monday morning quarterbacking going on here. To recap...
He did NOT want to sell the car. He simply was not in a position to be able to take possesion of and then race the car. The fact that the car does not have a VIN throws a brick wall in front of any normal guys financial arrangement to borrow against the car and pay the taxes. ALL the track guys available stepped up with their checkbooks open, he tested the market for a week, again, with a lot of advice from Skip Thomas, and remember the season starts in three weeks. If Skip can't value the car and give him a sense of how long he should wait NOBODY can. Trades of boats, cars, airplanes and whatever don't work in this situation. INCOME tax has to be paid on the win at $150,000, so swapping one expensive toy for another does not work, the tax problem is still there.
Did he leave money on the table? I don't think so from what I heard. He took phone calls and accepted bids for a week in a business like fashion. And he DID negotiate an arrangement with the buyer that let him keep some involvement with the car in the future. Very savvy and very thoughtful of the buyer to offer that and there is significant dollar value as well as fun factor to be placed on what was offered in addition to the rumored sale price.
I also think he had handled the sale in a quiet dignified fashion. Offer it publicly for sale? Please, what do you think the reaction would have been if he put it on EBay?
And as to why he is not speaking here just examine the post above that says................
"I'm guessing that Bonkers is quite because he's worried about getting flamed for selling it. So many that wanted it would have kept it and raced it, they might jump him if he shows up on here. I know that's what I'm waiting on."
Due to the smilie I think it maybe it was made in jest but some of us have suggested to him that he already feels bad enough about selling it and he does not need to subject himself to that kind of discussion. Once again, he feels bad about selling, he had to do it, and it was the right thing for his family, it's done and I wish we could leave it alone and be happy for his win. He certainly is not the first to sell a raffle car, nor will he be the last due to the tax problem presented by such a windfall. And he made sure that the car remained in the right place, with a VCA guy on the track racing in Viper Days.
He did NOT want to sell the car. He simply was not in a position to be able to take possesion of and then race the car. The fact that the car does not have a VIN throws a brick wall in front of any normal guys financial arrangement to borrow against the car and pay the taxes. ALL the track guys available stepped up with their checkbooks open, he tested the market for a week, again, with a lot of advice from Skip Thomas, and remember the season starts in three weeks. If Skip can't value the car and give him a sense of how long he should wait NOBODY can. Trades of boats, cars, airplanes and whatever don't work in this situation. INCOME tax has to be paid on the win at $150,000, so swapping one expensive toy for another does not work, the tax problem is still there.
Did he leave money on the table? I don't think so from what I heard. He took phone calls and accepted bids for a week in a business like fashion. And he DID negotiate an arrangement with the buyer that let him keep some involvement with the car in the future. Very savvy and very thoughtful of the buyer to offer that and there is significant dollar value as well as fun factor to be placed on what was offered in addition to the rumored sale price.
I also think he had handled the sale in a quiet dignified fashion. Offer it publicly for sale? Please, what do you think the reaction would have been if he put it on EBay?
And as to why he is not speaking here just examine the post above that says................
"I'm guessing that Bonkers is quite because he's worried about getting flamed for selling it. So many that wanted it would have kept it and raced it, they might jump him if he shows up on here. I know that's what I'm waiting on."
Due to the smilie I think it maybe it was made in jest but some of us have suggested to him that he already feels bad enough about selling it and he does not need to subject himself to that kind of discussion. Once again, he feels bad about selling, he had to do it, and it was the right thing for his family, it's done and I wish we could leave it alone and be happy for his win. He certainly is not the first to sell a raffle car, nor will he be the last due to the tax problem presented by such a windfall. And he made sure that the car remained in the right place, with a VCA guy on the track racing in Viper Days.
Blue Pilot
Viper Owner
Even when you 'win' something you have to pay sales tax, so if they valued the car at $150,000, depending on your state taxes, say 6%, that would equal $9000 in sales tax.
Then when you file your federal income tax return, you have to claim the value of the prize as income of $150,000.
So lets say your are in a 33% tax bracket, you now owe the feds an additional $49,500 in income tax.
'Winning' this car just cost you $58,500.
I am talking from experience here. I 'won' a seadoo back in the early 90's and this is what I had to do.
Then when you file your federal income tax return, you have to claim the value of the prize as income of $150,000.
So lets say your are in a 33% tax bracket, you now owe the feds an additional $49,500 in income tax.
'Winning' this car just cost you $58,500.
I am talking from experience here. I 'won' a seadoo back in the early 90's and this is what I had to do.
I think everyone should stay out of this gentleman's business. I know if it was me I would not have been happy with all the nosey little pricks here.
By the way, I bought my raffle tickets with the sole intention to sell it, so did a lot of others. In fact, I bet a poll would reveal that most people who bought tickets would have sold if they had won in order to pay the taxes and pocket some coin.
If Bonkers made some coin and helped someone else get into a Comp Coupe for below market at the same time, then congratulations to him for being a great guy.
By the way, I bought my raffle tickets with the sole intention to sell it, so did a lot of others. In fact, I bet a poll would reveal that most people who bought tickets would have sold if they had won in order to pay the taxes and pocket some coin.
If Bonkers made some coin and helped someone else get into a Comp Coupe for below market at the same time, then congratulations to him for being a great guy.
Frank Parise
VCA Venom Member
If the winner takes the car, I would think that DC is required to send IRS Form 1099 to the winner for the full MSRP. I would also think that DC is required to withhold (collect) federal income taxes from the winner before they release the car. I won a raffle car many years ago in a golf tournament. The dealer offered me the car or a check for the wholesale price. I took the check (less FIT withheld)and received a Form 1099 for the wholesale amount.
big-n-italian
Enthusiast
personally i feel bonkers has NOTHING to be ashamed of. afterall, we are not talking about winning a chevy cavalier here.
1. There is a large 2005 tax burden that needs paid now. $60,000?
2. This is NOT a cheap car to own and operate.
let me guess that the majority of the people on this board would have been forced to do the same thing. sounds like he received some good guidance, and handled it the best he could under HIS circumstances.
1. There is a large 2005 tax burden that needs paid now. $60,000?
2. This is NOT a cheap car to own and operate.
let me guess that the majority of the people on this board would have been forced to do the same thing. sounds like he received some good guidance, and handled it the best he could under HIS circumstances.
Toby
Enthusiast
so bonks walks away with 50K+ of cash. Good for him.
Invested properly, he could do a lot with that money. (aka, better retirement, college fund, etc)
or like most idiots, he could blow it and 5 years from now have nothing to show for it.
either way...enjoy the $$.
Invested properly, he could do a lot with that money. (aka, better retirement, college fund, etc)
or like most idiots, he could blow it and 5 years from now have nothing to show for it.
either way...enjoy the $$.
bonkers being only 28 years old handled this as if he were much older. 
in the end he walks away a huge winner, the new owner benefits from it and most
importantly the VCA benefits from it allowing all of us to look forward to the
next raffle.
CONGRATS BONKERS, ENJOY YOUR WINNINGS.
tom
in the end he walks away a huge winner, the new owner benefits from it and most
importantly the VCA benefits from it allowing all of us to look forward to the
next raffle.
CONGRATS BONKERS, ENJOY YOUR WINNINGS.
tom
