Lucky Winner...

flyitup

flyitup

Well-Known Member
I just got the latest Sportys catalog and in it was, of course, the 2002 Skyhawk that someone will be winning in July. If you look towards the bottom of the add it says, "Winner is responsible for any local, state, or federal taxes." What tax or taxes is this referring to? Would the winner be subject to a capital gains tax? If so, at the current rate of %15, you're looking at $27,000 in taxes! I couldn't even afford to win it!

What do you all think?
 
I have always wondered that too, about affording the tax when winning something that expensive. There was an article in AOPA Pilot recently about what someone would do if they the Waco and how they would pay for the taxes. Some said they would sell, some said they would go nuts and do anything to keep, etc, etc.

Flyitup, how has the lawn mowing business been going? I haven't seen you on jetcareers in a while. How is your instrument training going? I hope everything is going great.
 
There are prize and gift taxes which can be quite high. I had a professor in college who a long time ago won both showcases on The Price Is Right. He ended up having to sell at least half of his winnings in order to afford the taxes. My understanding is that in some areas they can be as high as 40-60% of market value.
 
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Flyitup, how has the lawn mowing business been going? I haven't seen you on jetcareers in a while. How is your instrument training going? I hope everything is going great.

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Well, the lawn business is going fairly well for the first year, but I'm looking forward to next summer. I plan on getting an earlier start obtaining customers in the spring. Eventually I would like to have several crews going and retire from actually being the guy that mows the lawns!

As far as the instrument training, I plan on picking it up full swing again in the fall/winter. For now, I've just been building some time on personal flights. Actually I'm taking a good friend of mine up tomorrow for the first time. Can you imagine that...? He has NEVER been airborne in his whole life! I can't wait!!
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How's life in good ole' South Dakota going?!
 
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How's life in good ole' South Dakota going?!

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Try one state North of South Dakota!!

Just started my instrument training three weeks ago and will be done by the middle of August. I also started flying aerobatics in the Super Decathalon, which is so much fun. Other than that, I am enjoying the cancelled flights due to high winds and/or thunderstorms, and going to summer school. I know you guys from Oklahoma know about thunderstorms, probably one there everyday.
 
Hey Ruppert

I take it you finished up the 105 course...congrats on that...how far along are u in 221? I got the stage 27 done the day before i left in May. I dind't think the stage checks were all that bad at all. Good luck and let me know how the 222 stuff goes, I'll be in that fall.
 
The 105 course finished up real well. TOok the final stage and passed. Then I had my private ride with the one of the guys on the 4th Floor and that went great. Some of the best flying I had done up to that point. I should have my stage 20 for 221 on wednesday and the stage 27 on Sunday. Then 222 starts on Monday. Lots of flying and studying, the studying mostly because of Physics (ick).


I just got back from a flight and it was pretty cool. I got to log my first actual, .5! Being under the hood and in actual is so different. Can't wait for more clouds.
 
Stuff like gambling and contest winnings is taxed at the supplemental income rate, currently 28%. So winning a ~$200k airplane would incur a ~$56k tax liability. Sounds like a lot, but it'd be easy to finance with a free-and-clear airplane as collateral, and operating it as a lease-back to a flying club or FBO would be an easy way to make those payments.
 
Comes back again to their being only a flat tax, would solve this problem. Salex tax only. Forget income tax, forget capital gains. What a way to kickstart an economy, huh?
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Anyhow, I'd pay the tax cash. Then after putting a few hours on it just because, sell it around the $100k range or so to make sure it sells quick, and buy a nice Cherokee 6 or Dakota.

So anyhow, if you win, I'll take it off your hands for the tax fees
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Josh
 
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Try one state North of South Dakota!!

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Oops! Must be the exhaust fumes from the Toro...
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Glad to hear all is well.. The acrobatic flying sounds like a blast! I might look into that someday!



Aloft,

Thanks for the info. Your little idea about leasing it to a flight school sounds like a good one... After paying the taxes you would have a nice money-making asset!

Now I just have to win it...
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Stuff like gambling and contest winnings is taxed at the supplemental income rate, currently 28%. So winning a ~$200k airplane would incur a ~$56k tax liability. Sounds like a lot, but it'd be easy to finance with a free-and-clear airplane as collateral, and operating it as a lease-back to a flying club or FBO would be an easy way to make those payments.

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Exactly. IOW, get yerself a spankin' new 172 for $56k.
 
Such pessimists!!!!!

You've just one a million dollars!!!!!

"Can you imagine the taxes on that??"

Myself, I'd just sell the plane for $150,000 (easy to find a buyer at that price), then by a late model Skyhawk for $100,000. With the money that's left over, I would keep it in the bank, and there's my emergency maintenance Account!!!
 
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