in charlestown, WV there was the free raffle for $150k (according to them) mercedes suv. u can opt for $40k cash instead.

whats more EV? the $150k car or the cash?

Could you not take the car and immediately sell it for $100k (or any amount > $40k)?

pay taxes twice?

once on $150k car, then again selling the $150k car for $100k?

also no idea on actual worth of car. what the casino claims to be their tax write off amount might be different than actual value.

thus this thread...

You'll pay tax on the 40k also.

Well it sounds to me like you know how to answer the question. You just don't have all of the necessary information to answer it. Unfortunately, it doesn't sound like anyone who posts here regularly does. Unless one of us works for that specific casino...

The "value" of the car is far more that the casino will pay for it, or what the dealership paid. But $40K seems way way low. Probably about three times that much. You should have no problem taking the car and reselling it for way more than $40K. You could look up the kelly blue book value for a used car of that year. A loaded G class sells for about $120K new. I don't know what costs $150K.

If you pay tax on the $150K you won't have to pay tax when you sell it, unless you sell it for more than $150K.

If the car indeed has a new price of $150K, that will increase your income by that amount. Assuming you will wind up with a total tax liability of about 40%, you will owe $60K in taxes. Do you have $60K to fork up? If so, and you can sell the car for $100K, you will wind up with $40K net profit.

If you take the $40K, you will pay tax on that amount of about $14K (35% rate), leaving you with $26K profit.

The exact amounts depend on your income before winning the prize, whether you're single or married, etc. Most importantly, what is the fair market price for a used car of the kind being given away? Forget about the $150K number. If the fair selling price is below $90K, it probably is worth taking the $40K because of the small net price difference and the work involved in selling the car.

On the other hand, if you like the car, and it's worth $60K to you, then keep is and drive it for a few years before selling it, assuming, of course, that you win it.