Some people are lucky and win a house in a raffle. But if they do, they need to know that they will have to pay taxes on the value of the house they have won. The IRS will consider the winnings from the raffle as income, and you’ll have to pay income taxes on the value of the house. Most house raffles by individuals are illegal in most states. While in some states charities can raffle off homes and keep the proceeds for their use in one state, charities can work with homeowners to raffle off their homes. There are strict rules and a house raffle may not be much better than trying to auction the home or selling the home using conventional methods.
House Raffle Is Possible For Some Sellers in Some States.
In the past, we have written about house raffles and how only charities or other qualified not for profit organizations can legally conduct house raffles. Now, however, it seems that homeowners have teamed up in at least one state to set up, conduct and sell homes using house raffles. Will you be able to sell you home using a house raffle? That will depend on the laws in your state and the willingness of the authorities to allow them.
Thinking of conducting a house raffle to unload your house instead of selling it? It’s illegal for homeowners to raffle off their own house. Instead, you have to work with a nonprofit organization and transfer ownershipOwnership is the absolute right to use, enjoy, and dispose of property. You own it! of the house to them. The nonprofit can then raffle off your house, and you’ll get a tax deduction – not cash. Here are more details on house raffles.
Today on the Clark Howard show, we discussed the new unemployment numbers. Ilyce talked about her upcoming How to Profit From Foreclosures event, on October 24th, and mentioned that Clark Howard listeners would get a special 2 for 1 offer on the Early Bird Special. Details of the offer are below. We also have FREE BOOKS and EBOOKS we’re giving away. Thanks for listening to Newstalk 750 WSB.
Thinking about a house raffle or selling your home using a lottery?
While selling your home through a lottery or house raffle may seem appealing, it is illegal in most states. If you’re desperately selling your home, you may want to auction off your home instead. Learn why selling a home via an auction is preferable to selling a home using a lottery.
In some states, selling homes through a lottery or raffle is legal, but may be strictly regulated. If you plan to have people participate in your home or house lottery that are from states other than your own, you may have to comply with the lottery or raffle rules in each of those states.