How to Get a $3 Million Mansion for Just $10 at CNBC.com report that Mike and Laura Brannan are selling 300,000 $10 raffle tickets for their $3 million home. Winning sounded like a great return on $10, until I figured out the tax consequences.
Based on the 2009 tax tables, a couple filing jointly would owe $1,020,362 of federal taxes on $3 million of taxable income. For those living in states with an income tax, between 4.35% (Michigan) to 10.55% (California) of the $3 million value, or $130,500 to $316,500, would need to be paid.
Also, the annual property taxes are $34,000 per year.
So a winning $10 raffle ticket could cost me $1 million+ dollars in the first year and $34,000 each subsequent year. Like most people, I don't have that much saved in our emergency funds to cover the tax costs. I won't be buying a ticket for this raffle.
For more on Ideas You Can Use, check back every Tuesday Wednesday for a new segment.
This is not financial or tax advice. Please consult a professional advisor.
Copyright © 2009 Achievement Catalyst, LLC
No comments:
Post a Comment
Comment guidelines: My Wealth Builder will publish comments that are about the topic and do not contain inappropriate language. My Wealth Builder reserves the right to edit or delete comments for any reason which includes those that have advertising (either for a product, website, or blog), contain inappropriate language or are not about the topic.