Original 1960 Les Paul Burst 85k obo

Discussion in 'Member Classifieds' started by tvmalsv, Sep 1, 2013.

  1. Jimmi

    Jimmi Senior Member

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    What about my idea of the raffle being who has the opportunity to buy the guitar or raising the tax money from the raffle itself? 30% of 85k = 25k...so lets say sell enough to get to 135k or so....you just need enough cash at the end so that it equals the tax bill minus the guitar. A factor will be the annual income of the winner but you can't control for everything.
     
  2. Greco

    Greco Senior Member

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    Okay more ideas. Should the raffle go ahead, regardless of local USA gaming laws, I think it makes total sense to not set a limit to the number of entrants. Rather set a time limit of say 3 or 4 months. Chances are you will make a lot more than $85k. The total you make in profit bears no relation to the value of the guitar or the small percentage paid for entry. It has everything to do with word of mouth and hype. You could be looking at $200k easily once word spreads around. I would only limit the number of entries per customer to keep it fair. Judt keep yhe price point attractive to the everyman. Say $50. Just need to strike the right balance and hold onto a reserve price if tickets dont sell.
     
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  3. nuance97

    nuance97 Premium Member

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    The government probably already knows all about this...NSA ring a bell?:shock: :lol:
     
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  4. Funkadelic

    Funkadelic Senior Member

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    I have to disagree with this: i'd be more willing to pay $150 for a winning chance of 1/567 rather than having 1/2000. So I think the number of participants should be determined from the beginning, just as there are limited numbers in every raffle, actually. Once the tickets sell out, that's it. Having everyone participate without a limit of participants is more like an auction, really (in a way). I'm not in if there are 2000 participants, that said, and I imagine it will make a bunch of people pass as well.

    :hmm:
     
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  5. J.T.

    J.T. Senior Member

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    Just like every other contest, in the rules you specify that the winner is responsible for all taxes for his winnings. That's between him (or her), their accountant and the IRS. Done. Next issue?
     
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  6. Shadowplayer

    Shadowplayer Senior Member

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    legit question regarding the whole taxes thing. For me, a student with no job, would taxes apply?
     
  7. Funkadelic

    Funkadelic Senior Member

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    I imagine it would. In some countries, people have to sell a bunch of stuff to raise cash to pay for taxes, for example, when they inherit something.
     
  8. Shadowplayer

    Shadowplayer Senior Member

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    ****...im still in
     
  9. theNARDdog9

    theNARDdog9 Senior Member

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    This is actually a good question. As a full time student (this includes myself), one is often considered tax "exempt". If you have income, which this guitar would be, there is still generally a portion taken out for tax. In CA it is only about 12% due to the fact that tax is still taken out for Social Security and a few other things; however, full time students are often not subject to federal income tax. So for full time students, figure ~10-15% for taxes = $8.5K-13K :shock:
     
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  10. rclausen

    rclausen Senior Member

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    The seller would get hit with a capital gains tax. 15-28% depending on how long the 'investment' has been held.
     
  11. theNARDdog9

    theNARDdog9 Senior Member

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    Do you know if the winner would be taxed as part of their income (~30%) or would this be considered a lottery tax (~50% if I'm not mistaken...)
     
  12. Sct13

    Sct13 Gold Supporter Premium Member

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    But does it actually count as an investment?...there is no set % rate of increase over time.....But there is risk of decrease.

    Just wondering how anyone could call an antique electric guitar used in popular music an investment. "Legally" in the context of the IRS.

    I can see the sales tax becoming and issue. but isn't capital gains tax an investors market thing....I am not schooled in these things.... :shock:
     
  13. J.T.

    J.T. Senior Member

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    Income (you'll get taxed on the present value). Not investment. That would come down the road if you sold it for a significant profit...
     
  14. upl8tr

    upl8tr Senior Member

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    For future reference, the answer to this question will ALWAYS be yes! :sadwave:
     
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  15. theaaron

    theaaron Banned

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    that is a very very very good idea. I would be in for either the $150 ticket or the $250 ticket just someone please let me know if this happens! Ill be watching the thread and what not. Very cool if this happens...
     
  16. doctor z

    doctor z Junior Member

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    I'm in for a raffle ticket if this takes shape.
     
  17. sdgiffin

    sdgiffin Senior Member

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    If this is setup in a crowd funded project like kickstarter, isn't money given considered donations? Being from Canada, our tax laws are much different but I would assume that this might be the easiest way to avoid tax rape.
     
  18. Shadowplayer

    Shadowplayer Senior Member

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    so basically if I happen to win this thing if this whole raffle thing goes on, I would have to sell it to pay the taxes?
     
  19. Kenny Davidoff

    Kenny Davidoff Senior Member

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    Exactly! Welcome to the land of the FREE!
     
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  20. Barnaby

    Barnaby Premium Member

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    Probably...but you shouldn't lose more than five or ten grand on the whole deal. :D
     
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