We keep seeing the TV ad's for the St. Jude "Dream Home" to be raffled off soon. The chances cost $100 each and that money goes to the much needed St. Jude Hospital fund. Now, since we are retired folks living on a meager little income and don't have a lot of $'s, what happens if WE were to really beat the odds and win this $400,000 plus home in Castle Rock. Our chance of winning this home is damn near ZERO but I am wondering if a little nobody without much (any) money wins, how does the TAX thing work. I have absolutely no idea about taxes where you big city boys probably are well versed in such matters. Would the winner of the home need to pay taxes on the value of that home in the same year that it is won in? Even if the winner would donate the entire home BACK to the St. Jude Hospital system, he's still liable for the amount of the house that he just won.
I am thinking of scrapping the entire idea of even taking a chance on winning just because of the TAX possibilities. Yeah, the winner could certainly put the house up for sale immediately but with the Obama mess, the house could possibly not sell for years and there would be some serious taxes to consider.......??????????