Anyone buying tickets for the McDonalds charity better read the fine print. I was set to buy some for the Ford GT they raffled off in 2006 till I did...
The Grand Prize Winner is responsible for paying all applicable income, sales and any other taxes associated with winning and use of the Grand Prize. Due to recent changes in the tax law, the I.R.S. requires the Charity to collect federal income taxes upon delivery of the Grand Prize to the Grand Prize Winner. Such taxes shall be based on the appraised value of the Grand Prize, which is $118,200.00, less any amount the Grand Prize Winner has paid for the purchase of his or her Contest Tickets (the “Net Difference”), computed at 25% of the Net Difference to determine the amount of the withholding tax, assuming the Grand Prize Winner supplies Charity with his or her federal Taxpayer Identification Number (“TIN”). Pursuant to applicable federal and state law, if the Grand Prize Winner fails or refuses to supply his or her TIN to Charity, then the Charity must withhold such taxes at the rate of 33.33% of the Net Amount.
That rather sounds like you get to pay Mc Donalds charity 25% of the listed $118K valuation as up front taxes before you actually get the car. 33% id you don't have or give them a "TIN". Do you have $29,500 kicking around to pay the IRS bite of your good fortune?
This is a contest I can't afford to win. The only way to win is not to play the game, and thats too bad because its a good charity. Leave it to the stinking taxman to screw it all up.
