This couple is holding a writing contest to win their house:
www.winmyhouse.net
The entry fee is $100. What tax responsibities will the winner have?
2007-03-23 02:20:55 · 3 answers · asked by Gabby_Gabby_Purrsalot 7 in Business & Finance ➔ Taxes ➔ United States
The full fair market value of the home will be taxable as ordinary income to the winner.
2007-03-23 02:42:24 · answer #1 · answered by Bostonian In MO 7 · 4⤊ 0⤋
The house sale will be treated as a regular house sale for the winner. They'll be responsible to pay the tax on the house as if it was income, whatever their tax bracket will be after the winnings.
As for the seller: the extra money they make above and beyond the sale price of the home will be considered income and will be taxed as such within their incomes tax bracket whatever that will be by the end of their fiscal earning year. All income is taxed and included on top of any other income they may have.
2007-03-23 06:08:52 · answer #2 · answered by TJTB 7 · 0⤊ 0⤋
Tax Legislation has really not been enacted to cover all of the schemes being done on the Internel.
More than likely the webmasters of this website wont pay a dime in taxes.
Wanna report them?
2007-03-23 07:27:42 · answer #3 · answered by bold4bs 4 · 0⤊ 1⤋