$1000 gets you a 1 in 200 shot at your own Tesla Roadster

As much as I want to enter a raffle for a Tesla Roadster my bad luck keeps me from wasting $1000.

 

Lessee, they make $200K, give someone the car that's priced at
$100K minus any dep, so they make out like bandits. Hmmph, the
rest had better be going to a *really* good cause.
.
_H*

 

true hobbit, but even if you had the 109K, you still could not buy one, as there is still a waitng list, and they are ending production on this model soon, so it's not a bad bet for $1K, I am just not the gambling type.

 

Even if you win, it costs more than $1000 - you owe taxes on the actual value (as gambling winnings).

So here's the real score:
Losers pay $1000 each (for a good cause). And this is probably deductible as charity, so the net cost is more like $750.
Winner pays $1000 plus $28k taxes for a $100,000 car. A nice discount, but keep it in perspective.

 

I will play if it is a brand new Tesla.
The battery warranty will run out in a year.

 

I wonder, do you have to be present at the drawing to win? :car:

 

Depending on where you live, there maybe no tax or a severely reduced tax for EV so you could net a great car for a 1-200 chance. which in the grand schemes of raffles is pretty good odds.

 

Not quite - you're not purchasing an EV, you're receiving a gambling windfall (based on the value of the prize). So you'll pay taxes on it as a gambling windfall, not as an EV purchase.

 

if anyone s interested, and local to Boston, Tesla Boston is having an "event" on April 3rd (1 week from today, next Saturday), at the Mandarin Oriental Hotel, I might just show up for a test drive, not that I could afford one, but would be nice to see if I can even fit in the car

Tesla Motors - Tesla Boston - Schedule a Roadster Test Drive

 

The winner will have to pay Federal Income Tax (& probably state) on the value of the prize. In NJ there is no sales tax on an EV purchase.

I believe you can pick a Roadster up off the floor in NY and the waiting list is history. It just takes a few months for the order to be built.

 

As several people have already said, you pay federal income tax on the prize, if you win, which at 200 to 1 you probably won't.

Next, the odds are not good. The car is used, so the value is probably closer to $75,000 than $100,000; if you are in the 25% tax bracket, and assuming the $75K valuation, you'll pay $18,750 in taxes, so your net gain (if you win) is about $55K.

You are spending $1,000 to have a one in 200 chance of winning $55,000.

It's only a good bet if you already intended to donate to the charity. And I'd consult a tax accountant before assuming you could deduct the price of the lottery ticket as a charitable donation. If you receive something of value it's not deductible. Is a lottery ticket something of value? I don't know what the IRS says about that.

I wish I'd bought a Tesla outright instead of the Porsche, but that's only because the Porsche conversion turned out to be such a disaster. I may feel differently once it's fixed.

 

If the prize is valued at $100,000 then the ticket has a value of $500. The deductible charitable contribution is the other $500. The same concept applies to the "gifts" one receives for donating to PBS or to the magazine subscription.