Conservation First Super Raffle Taxes

[Buff-it Ranch]

My father purchased a $10 Swarovski Optics Package from these guys today. He read the fine print after the fact and noticed that the winner has to pay $3600 (24%) in taxes.
 

Has there always been a tax requirement for non-game prizes over $5000 in value or is it something new? Are they a non-profit and if so how is this possible? 

[PRDATR]

IRS Taxes have always been in effect for anything won over a certain dollar value. Think Vegas winnings or Game Shows.

[RNGRDOG]

The difference is...you don't have to come "out-of-pocket" for Vegas or game shows.

[NOTAGS]

God forbid the IRS miss a single penny that our federal government could misspend and waste….

[yotebuster]

17 minutes ago, RNGRDOG said:

The difference is...you don't have to come "out-of-pocket" for Vegas or game shows.

You do if it’s an item, unless you wanna give them 24% of your car or optics package. 

[Chef]

Definitely have to pay taxes on larger valued raffle winnings.

.

True Story:

Company won a boom truck at an in person/live raffle...re-donated it into and during the live event 10 seconds later.

Company had to pay taxes on it.  Bummer.

[Chef]

Know the law.

Know the tax law.

[TOBY]

So was the raffle organization tax exempt when they purchased the optics package? Cuz Swaro aint donating this package to nobody. If they are not tax exempt then taxes were paid already  when purchased?

[eddielasvegas]

And here's another rub, you pay tax on the full retail value of the prize.  In almost all instances, the retail value is well above what it can be bought for.

 

Eddie

 

[Chef]

22 minutes ago, TOBY said:

So was the raffle organization tax exempt when they purchased the optics package? Cuz Swaro aint donating this package to nobody. If they are not tax exempt then taxes were paid already  when purchased?

According to the Az Corporations Commission, yes they are a domestic nonprofit corporation.

 

[Chef]

You can check out the reporting requirements & Federal income tax withholding notice for Tax-Exempt organizations and raffle prizes.

39810C05.pmd (irs.gov)

 

[AZBIG10]

32 minutes ago, eddielasvegas said:

And here's another rub, you pay tax on the full retail value of the prize.  In almost all instances, the retail value is well above what it can be bought for.

 

Eddie

 

Keep ur money no need to buy into this “raffle” 

 

if you want to kill big sh1t e scout on cw.

if you want high end optics buy once cry once.

 

 

[CatfishKev]

7 hours ago, AZBIG10 said:

you want to kill big sh1t e scout on cw.

 

 

Lol, so true. It's about to happen here real soon 

[NOTAGS]

2 hours ago, CatfishKev said:

Lol, so true. It's about to happen here real soon 

So, my buddy drew an early bull tag in 36A, any one here have any honey holes to share?

[CatfishKev]

10 hours ago, NOTAGS said:

So, my buddy drew an early bull tag in 36A, any one here have any honey holes to share?

That was fast!

https://www.azgfd.com/location/gmu-36a/