Can you afford to win an OCC bike?

Question

What are the taxes on winning a chopper? $10k? $20k?

Answer 1

I wondered the same thing. It all depends on the fair-market value of the bike. I understand some can be over $100,000. Below is a link to an OCC chopper that says it retailed for $43,450 but now he's trying to sell at $30,000 and he only has 2309 miles! That's a big depreciation. I don't think OCC will give away $100,000 choppers. If they give away $50,000 models, figure the tax hit at $15,000 or 30%. That would include federal, state and local. Now decide what you will do with the bike. General riding? Probably not. If I had $15,000, I'd buy a Fatboy to do my cruising. So if you had the OCC, you might just want to ride it to local biker events and show it off. Is that worth $15,000 and you'd only be showing off one of their less-expensive models. A $100,000 model would cost you $30,000! $30,000 out of your pocket to get some oohs and aaws from a guy holding a plastic cup of beer. Not worth it to me.

Can you afford to win the bike. Yes you can but you may want to sell that thing ASAP. Pay the $15,000 in taxes and pocket the difference of $35,000. Take $15,000 of that and get you a nice Harley. Ride the Harley to a local bank and put the balance of $20,000 in an interest bearing account. 4% will earn you $800 the first year. Use that to pay for the gas and insurance on your Fatboy. Ride that new Harley to the biker event and find the guy holding the plastic cup of beer. Offer his babe a ride while he's oohin and aawin that new Fatboy.

This is what I plan to do (except I'll be riding with my wife so plastic-cup boy's babe is safe). If I don't win it, I hope you do.

Answer 2

Discovery channel will also be giving the chopper winner 16,000 to help with paying taxes on the chopper.

Answer 3

what is your income? and what is the appraised value of the chopper? it depnds on ur income bracket.it is like adding value to ur income.that is how it is calculated

Answer 4

yes

Answer 5

yes

Answer 6

yes