What Would You Do If You Won A Car Raffle

[davidd75]

Although I did not win this type of  raffle I'm am curious what's the best way to it handle financially wise when that day may come.  I am talking about the proliferation of raffles where the prize is either a new car or $.  A couple of points:

1. It seems to me if you are really not interested in the car its best to take the cash and pay the tax rate on that as at least you come ahead with  a lot of cash in your hand hopefully.

2. I don't see the point of taking the car (pay tax rate) unless you can sell it a higher value which I think does not happen because as soon as you take it from dealership values goes down?

3. Either way there is no creative way to avoid paying taxes as raffle winnings are considered taxable income?

4. Is there any scenario you can gift your car or $ to another to avoid paying the taxes?

Any other thoughts or suggestions?

[~King Lake~]

Usually the cash prize is way less then the car value, for example one of the Tesla raffles were for any Tesla model or $50,000, there is an annual Toyota sienna raffle and if I'm not mistaken the cash prize is $25,000

So I think just take the car

[davidd75]

Usually the cash prize is way less then the car value, for example one of the Tesla raffles were for any Tesla model or $50,000, there is an annual Toyota sienna raffle and if I'm not mistaken the cash prize is $25,000

So I think just take the car

Unless of course you don't need/want a new car and don't plan on selling it because then you are out thousands of dollars in income tax on a supposed "free" car.

[Dan]

Unless of course you don't need/want a new car and don't plan on selling it because then you are out thousands of dollars in income tax on a supposed "free" car.

Why would you not sell the car at 2x cash value?

[davidd75]

Why would you not sell the car at 2x cash value?

From what I have heard I understood that as soon as you take car out dealership the resale value drops significantly so you may not be able to get 2x cash value??