Armed Polite Society
Main Forums => The Roundtable => Topic started by: HankB on March 06, 2019, 12:04:38 PM
-
Here's a couple of questions on prizes and taxes.
Suppose a person wins a raffle for a couple of guns with MSRP of $10,000. The organization awarding the prize will issue a 1099 showing this value. The guns will be shipped to the winner's local FFL for transfer.
a) If the winner can document the identical guns are regularly sold at retail for less - say, $9000 - is there a method to reduce the taxable amount from MSRP to the actual retail value of $9000?
b) If the winner makes a deal with his friendly transfer FFL to sell him the guns for a lesser amount - say, $7000 - and does so, never actually taking possession, does this reduce the taxable value? Is there a form for this?
-
a) If you win a raffle, they should issue you a 1099-G. You can offset that gambling win, if you can show gambling losses. Which is one reason to have a member's card if you hit the casino frequently. They can print out your gambling history and show what you won/lost over the year. And Yes, we have a few people that hit the casino's fairly frequently and come in with 8-10 1099-G's showing their winnings. They also have a printout showing what they spent/lost that year.
b) The FFL can't "give" or "sell" you the prize for a lesser amount. The organization holding the raffle sets the value/price. And even if you turn around and sell them for less then the value, you still won a prize worth the original amount, and will be taxed on that amount. However, since you have sold the prize, you will now have money to pay the taxes...
-
Doesn't answer your question but I never received a 1099 on the last gun raffle I won. Pretty sure it was over the $650 threshold or whatever it was then.
-
$600 is the threshold.
-
Doesn't answer your question but I never received a 1099 on the last gun raffle I won. Pretty sure it was over the $650 threshold or whatever it was then.
Sounds like everybody all around could be in trouble on that one, no?
Can you add that in as taxable income even without a 1099 anyhow and be off the hook on that basis?
-
Sounds like everybody all around could be in trouble on that one, no?
Can you add that in as taxable income even without a 1099 anyhow and be off the hook on that basis?
Yes
-
I only had to go through that once. I won a rifle on a TSRA raffle. 20 years or so as a member and signing up for nearly every raffle they did. The amount on the 1099 form was pretty close to the MSRP of the rifle and scope. I just reported it straight up. I still have it.
-
Can I deduct all the losing raffle tickets if it's "gambling"?
-
Can I deduct all the losing raffle tickets if it's "gambling"?
You can deduct gambling losses up to the amount of reported gambling winnings. (See reply #2 regarding the 'player's club card' printouts that frequent gamblers use to document their losses to offset their winnings.)